Ngix not picking up the index file.... after upgrade

[Shri @ DevLib.Org]

I have had this working for ever and some how after the upgrade to 0.8.x it 
seems to have stopped working.

The following config results in the http://www.hostname.com/classifieds/ not 
working.

http://www.hostname.com/classifieds/index.php pulls up the correct file.

What am I missing? (Yes, I do need path_info to be set correctly)

       location /classifieds/(.+\.php)(/.+)$ {
                set $script $uri;
                set $path_info "";
                if ($uri ~ "(.+\.php)(/.+)") {
                        set $script $1;
                        set $path_info $2;
                }

                fastcgi_param  SCRIPT_FILENAME 
/site/expat/oct08$fastcgi_script_name;
                fastcgi_pass   phpbackend;
                fastcgi_param  PATH_INFO    $path_info;
                include        fastcgi_params;
        }

Help please. :)

Regards,
Shri