getting file upload problem, is this an nginx problem?

[mojipittan]

I'm getting error the following message when uploading a file on Drupal. 
"An unrecoverable error occurred. The uploaded file likely exceeded the maximum file size (2 MB) that this server supports." 

the files I am uploading are within the maximum size so I decided to look into the error logs to see what was being generated.

FastCGI sent in stderr: "PHP Notice:  Undefined index: SCRIPT_NAME in bootstrap.inc on line 250

PHP Notice:  Undefined index: REMOTE_ADDR in bootstrap.inc on line 1193" while reading response header from upstream, 
client: 222.222.22.222, #My IP is displayed here
server: domain.com, 
request: "POST /filefield/ahah/story/field_node_images/0 HTTP/1.1", 
upstream: "fastcgi://127.0.0.1:9000", 
host: "domain.com", 
referrer: "http://domain.com/node/add/story"

I am not sure what to make of this and would be grateful if someone could point me in the right direction.

Extra bit of info -  my local site runs fine but I believe this is a problem with my live server set up.

Live server is running:
nginx 0.7.61
php 5.3 with php-fpm

Clean url is working fine.

Is this a php 5.3 or a nginx vhost rewrite problem perhaps?

Posted at Nginx Forum: http://forum.nginx.org/read.php?2,19593,19593#msg-19593