What am I doing wrong?

I must preface this by saying that each EC2 instance is configured with a one-to-one NAT. For purposes of this, I edited the configuration file with the external hostname as AMAZONEC2 and the virtual domain as VIRTUALDOMAIN

Problem: I have tried configuring virtual hosts with both nginx(my choice) and apache. With both servers I had the same problem. The virtual domain would always go to the default domain no matter what I tried(yes I cleared my browsers cache and restarted nginx).

The virtual host configuration is below(/etc/nginx/conf.d/default.conf), any suggestions?

# You may add here your
# server {
# ...
# }
# statements for each of your virtual hosts to this file
##
# You should look at the following URL's in order to grasp a solid understanding
# of Nginx configuration files in order to fully unleash the power of Nginx.
# http://wiki.nginx.org/Pitfalls
# http://wiki.nginx.org/QuickStart
# http://wiki.nginx.org/Configuration
#
# Generally, you will want to move this file somewhere, and start with a clean
# file but keep this around for reference. Or just disable in sites-enabled.
#
# Please see /usr/share/doc/nginx-doc/examples/ for more detailed examples.
##

server {
## listen for ipv4; this line is default and implied
listen 80 default;
#listen [::]:80 default ipv6only=on; ## listen for ipv6

root /usr/share/nginx/www;
index index.html index.htm index.php;

# Make site accessible from http://localhost/
AMAZONEC2 localhost;

location / {
# First attempt to serve request as file, then
# as directory, then fall back to index.html
try_files $uri $uri/ /index.html;
}

location /doc {
root /usr/share;
autoindex on;
allow 127.0.0.1;
deny all;
}

location /images {
root /usr/share;
autoindex off;
}

#error_page 404 /404.html;

# redirect server error pages to the static page /50x.html
#
#error_page 500 502 503 504 /50x.html;
#location = /50x.html {
# root /usr/share/nginx/www;
#}

# proxy the PHP scripts to Apache listening on 127.0.0.1:80
#
#location ~ \.php$ {
# proxy_pass http://127.0.0.1;
#}

# pass the PHP scripts to FastCGI server listening on 127.0.0.1:9000
#
location ~ \.php$ {
fastcgi_pass 127.0.0.1:9000;
fastcgi_index index.php;
include fastcgi_params;
}

# deny access to .htaccess files, if Apache's document root
# concurs with nginx's one
#
#location ~ /\.ht {
# deny all;
#}
}
server {
server_name VIRTUALDOMAIN;
access_log /sites/cart/logs/access.log main;
root /sites/cart;
location / {
index index.php index.html index.htm;
}

error_page 500 502 503 504 /50x.html;
location = /50x.html {
root /usr/local/www/nginx-dist;
}

# pass the PHP scripts to FastCGI server listening on 127.0.0.1:9000
location ~ \.php$ {
fastcgi_pass 127.0.0.1:9000;
fastcgi_index index.php;
fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
include fastcgi_params;
}

location ~ /\.ht {
deny all;
}
}

# another virtual host using mix of IP-, name-, and port-based configuration
#
#server {
# listen 8000;
# listen somename:8080;
# server_name somename alias another.alias;
# root html;
# index index.html index.htm;
#
# location / {
# try_files $uri $uri/ /index.html;
# }
#}


# HTTPS server
#
#server {
# listen 443;
# server_name localhost;
#
# root html;
# index index.html index.htm;
#
# ssl on;
# ssl_certificate cert.pem;
# ssl_certificate_key cert.key;
#
# ssl_session_timeout 5m;
#
# ssl_protocols SSLv3 TLSv1;
# ssl_ciphers ALL:!ADH:!EXPORT56:RC4+RSA:+HIGH:+MEDIUM:+LOW:+SSLv3:+EXP;
# ssl_prefer_server_ciphers on;
#
# location / {
# try_files $uri $uri/ /index.html;
# }
#}



--Thank You