This tutorial is tested only on Ubuntu Server 10.04 LTS Lucid but also might work on other Ubuntu versions.

I assume that you have a fresh install of Ubuntu Server 10.04 LTS Lucid.

Update your packages:

# aptitude update
# aptitude safe-upgrade

Install nginx:

# aptitude -y install python-software-properties
# add-apt-repository ppa:nginx/stable
# aptitude update
# aptitude -y install nginx

Install PHP5 and other required modules:

# add-apt-repository ppa:brianmercer/php
# aptitude update
# aptitude -y install php5 php5-mysql php5-fpm php5-suhosin

Configure nginx:

# vi /etc/nginx/sites-enabled/default

On line 65, uncomment the following:

location ~ \.php$ {
                fastcgi_pass 127.0.0.1:9000;
                fastcgi_index index.php;
                include fastcgi_params;
        }

Restart nginx and php5-fpm:

# /etc/init.d/nginx restart
# /etc/init.d/php5-fpm restart

Create phpinfo script to access it from your browser:

# echo "<?php phpinfo(); ?>" > /usr/share/nginx/www/info.php

Go to your browser and access:

http://localhost/info.php

Restarting php5-fpm is necessary only if you changed something on your php.ini. Restarting nginx isn't necessary.