Having set up PHP5 based sites behind Nginx on Ubuntu systems a few times I thought I’d copy out some notes. Unlike Apache Nginx does not have a mod_php equivalent. This is good and bad. Bad as mod_php is regularly packaged and should be available for $your_distro or $os and will likely be well documented. Good as mod_php, or more accurately php, can have threading issues so you should be running apache with prefork, see here, which is bad if you want to use a threaded or event based web server.
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