I have Nagios + Nginx running on Debian Lenny box. I've updated from Nagios in Lenny repos to Nagios in Squeeze repos. Everything was working before that. Now, when I try to access nagios on http://myserver/nagios3/ I'm allowed to enter credentials, but after that I'm constantly getting "403 Forbidden" error.

nginx logs show:

"no user/password was provided for basic authentication, client: x.x.x.x, server: x.x.x.x, request: "GET /nagios3/ HTTP/1.1", host: "x.x.x.x""
"directory index of "/usr/share/nagios3/htdocs/" is forbidden, client: x.x.x.x, server: x.x.x.x, request: "GET /nagios3/ HTTP/1.1", host: "x.x.x.x""

As I was reading through Internet, I found that possible reason for that error to happen is plain text password in htpasswd file. However, I've used Apache's util to generate it.

Here's my nginx.conf:

server {
listen x.x.x.x:80;
server_name nagios3;

access_log /var/log/nginx/nagios_access.log;

location /nagios3/ {
root /usr/share/nagios3/htdocs;
index index.html;

rewrite ^/nagios3/(.*)$ /$1 break;

auth_basic "Nagios login";
auth_basic_user_file /etc/nagios3/htpasswd.users;
}

location ~ \.cgi$ {
root /usr/lib/cgi-bin/nagios3;
rewrite ^/cgi-bin/nagios3/(.*)$ /$1;

include /usr/local/nginx/conf/fastcgi_params;

fastcgi_pass 127.0.0.1:8999;
fastcgi_param SERVER_PORT 80;
fastcgi_param SCRIPT_FILENAME /usr/lib/cgi-bin/nagios3$fastcgi_script_name;
auth_basic "Nagios login";
auth_basic_user_file /etc/nagios3/htpasswd.users;

fastcgi_param AUTH_USER $remote_user;
fastcgi_param REMOTE_USER $remote_user;
}
}

All folder's permissions seem to be set OK. Can anyone shed some light on that?