"invalid parameter" on upstream servers (0.6.32)

[Sudara]

Hi there!

I would like to set max_fails=x on one of my server upstreams.

This is how it looks:

upstream mongrel_upstream {
    server 127.0.0.1:5000;
    server 127.0.0.1:5001;
    server 127.0.0.1:5002;
}

Whenever I add max_fails=2 (or any other option like fail_timeout=0s)  
like so:

upstream mongrel_upstream {
    server 127.0.0.1:5000 max_fails=2;
    server 127.0.0.1:5001;
    server 127.0.0.1:5002;
}

I get the following error:

Invalid parameter "max_fails=2" in /etc/nginx/servers/myserver.conf:3

What is strange is that I've used max_fails before successfully, and  
the config here is virtually identical. Everything else works fine in  
the upstream, it is only when adding an option like max_fails or  
fail_timeout that we have issues.

Any ideas? I'm using nginx 0.6.32

Thanks,
Sudara