W3Total Cache problem with Nginx

Hi I installed w3 total cache on my nginx powered WordPress site, I'm having errors however. For example when I enable page caching I get:

It appears Page Cache URL rewriting is not working. If using apache, verify that the server configuration allows .htaccess or if using nginx verify all configuration files are included in the configuration.

Here is the config for this site:

http://pastebin.com/SEdnyHbf

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