nginx virtualhosts

[Stefanita rares Dumitrescu]

user  nobody;
worker_processes  10;
error_log  logs/error.log;
#error_log  logs/error.log  notice;
#error_log  logs/error.log  info;
#pid        logs/nginx.pid;
events {
    worker_connections  1024;
}


http {
    include       mime.types;
    default_type  application/octet-stream;
    server_names_hash_bucket_size  128;
    log_format  main  '$remote_addr - $remote_user [$time_local] 
$request '
                      '"$status" $body_bytes_sent "$http_referer" '
                      '"$http_user_agent" "$http_x_forwarded_for"';
    access_log  logs/access.log  main;
    sendfile        on;
    #tcp_nopush     on;
    keepalive_timeout  20;
    #gzip  on;

    server {
        listen       11.11.11.11:80;
        server_name  host1.com;
        #charset koi8-r;
        access_log  logs/host1.com.access.log main;

        location / {
            root   /home/fs01/www;
            index  index.html index.htm index.php;
        }

        # serve static files directly
        location ~* ^.+.(jpg|jpeg|gif|css|png|js|ico|flv|zip|mp3)$ {
            root              /home/fs01/storage;
            access_log        off;
            expires           30d;
        }


        location / {
            proxy_pass        http://localhost:8000/;
            proxy_redirect    off;
            proxy_set_header  X-Forwarded-For 
$proxy_add_x_forwarded_for;
            proxy_set_header  X-Real-IP  $remote_addr;
            proxy_set_header  Host $http_host;
        }

        # redirect server error pages to the static page /50x.html
        #
        error_page   500 502 503 504  /50x.html;
        location = /50x.html {
            root   /usr/local/www/nginx-dist;
        }


   }

   server {
        listen       11.11.11.11:80;
        server_name  host2.net;
        #charset koi8-r;
        access_log  logs/host2.net.access.log main;

        location / {
            root   /home/m1emuz/public_html;
            index  index.html index.htm index.php;
        }

        # serve static files directly
        location ~* ^.+.(jpg|jpeg|gif|css|png|js|ico|flv|zip|mp3)$ {
            root              /home/m1emuz/public_html;
            access_log        off;
            expires           30d;
        }

        location / {
            proxy_pass        http://localhost:8000/;
            proxy_redirect    off;
            proxy_set_header  X-Forwarded-For 
$proxy_add_x_forwarded_for;
            proxy_set_header  X-Real-IP  $remote_addr;
            proxy_set_header  Host $http_host;

        }

        # redirect server error pages to the static page /50x.html
        #
        error_page   500 502 503 504  /50x.html;
        location = /50x.html {
            root   /usr/local/www/nginx-dist;
        }


   }

}


this is the full new config. i understand the 'root' and 'location' 
directives now, but idon't understand, why accessing host2.net, brings 
me to host1.com folder. i know that once the first match is done, the 
query stops, but it's virtual host. and i don't understand why the files 
are not served from
/home/m1emuz/public_html
-- 
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