'unknown directive "worker_processes"' error

[Peter Bloom]

I am trying to deploy a Rails 3 app using Nginx and Passenger.  I
installed using Phusion's 'passenger-install-nginx-module'

When I try to start nginx, I get an 'unknown directive
"worker_processes"' error, which I do not understand.

First directive in 'nginx.conf' file is:

worker_processes  1;

The Nginx web site says "By default, Nginx will be installed in /usr/
local/nginx.", but my install went to /usr/sbin/nginx.  Is this a
problem?

My Nginx version is:

nginx version: nginx/0.6.35
configure arguments: --conf-path=/etc/nginx/nginx.conf --error-log-
path=/var/log/nginx/error.log --pid-path=/var/run/nginx.pid --lock-
path=/var/lock/nginx.lock --http-log-path=/var/log/nginx/access.log --
http-client-body-temp-path=/var/lib/nginx/body --http-proxy-temp-path=/
var/lib/nginx/proxy --http-fastcgi-temp-path=/var/lib/nginx/fastcgi --
with-http_stub_status_module --with-http_flv_module --with-
http_ssl_module --with-http_dav_module --with-http_realip_module

Thanks!