I have changed it this, and it still does not work:(

server {
server_name domain.com www.domain.com;
root /home/nginx/domains/domain.com/public;

server_name m.domain.com www.m.domain.com;
root /home/nginx/domains/domain.com/public/m;

try_files $uri $uri/ /index.php;

location / {
index index.html index.htm index.php;
try_files $uri $uri/ /index.php?$args;
}

location ^~ /m/ {
rewrite ^/m/(.*) http://m.domain.com/$1 permanent;
}


# Directives to send expires headers and turn off 404 error logging.
location ~* \.(js|css|png|jpg|jpeg|gif|ico)$ {
expires 24h;
log_not_found off;
}

include /usr/local/nginx/conf/staticfiles.conf;
include /usr/local/nginx/conf/php.conf;
include /usr/local/nginx/conf/drop.conf;
#include /usr/local/nginx/conf/errorpage.conf;

}