I get this varnish error “FetchError no backend connection”

Varnishlog:

0 CLI - Rd ping
0 CLI - Wr 200 19 PONG 1340829925 1.0
12 SessionOpen c 79.124.74.11 3063 :80
12 SessionClose c EOF
12 StatSess c 79.124.74.11 3063 0 1 0 0 0 0 0 0
0 CLI - Rd ping
0 CLI - Wr 200 19 PONG 1340829928 1.0
0 CLI - Rd ping
0 CLI - Wr 200 19 PONG 1340829931 1.0
12 SessionOpen c 108.62.115.226 46211 :80
12 ReqStart c 108.62.115.226 46211 467185881
12 RxRequest c GET
12 RxURL c /
12 RxProtocol c HTTP/1.0
12 RxHeader c User-Agent: Pingdom.com_bot_version_1.4_(http://www.pingdom.com/)
12 RxHeader c Host: www.mysite.com
12 VCL_call c recv lookup
12 VCL_call c hash
12 Hash c /
12 Hash c www.mysite.com
12 VCL_return c hash
12 VCL_call c miss fetch
12 FetchError c no backend connection
12 VCL_call c error deliver
12 VCL_call c deliver deliver
12 TxProtocol c HTTP/1.1
12 TxStatus c 503
12 TxResponse c Service Unavailable
12 TxHeader c Server: Varnish
12 TxHeader c Content-Type: text/html; charset=utf-8
12 TxHeader c Retry-After: 5
12 TxHeader c Content-Length: 418
12 TxHeader c Accept-Ranges: bytes
12 TxHeader c Date: Wed, 27 Jun 2012 20:45:31 GMT
12 TxHeader c X-Varnish: 467185881
12 TxHeader c Age: 1
12 TxHeader c Via: 1.1 varnish
12 TxHeader c Connection: close
12 Length c 418
12 ReqEnd c 467185881 1340829931.192433119 1340829931.891024113 0.000051022 0.698516846 0.000074035
12 SessionClose c error
12 StatSess c 108.62.115.226 46211 1 1 1 0 0 0 256 418
0 CLI - Rd ping
0 CLI - Wr 200 19 PONG 1340829934 1.0
0 CLI - Rd ping
0 CLI - Wr 200 19 PONG 1340829937 1.0

---

netstat -tlnp
Active Internet connections (only servers)
Proto Recv-Q Send-Q Local Address Foreign Address State PID/Program name
tcp 0 0 0.0.0.0:8080 0.0.0.0:* LISTEN 3086/nginx
tcp 0 0 0.0.0.0:80 0.0.0.0:* LISTEN 1915/varnishd
tcp 0 0 0.0.0.0:22 0.0.0.0:* LISTEN 1279/sshd
tcp 0 0 127.0.0.2:25 0.0.0.0:* LISTEN 3195/sendmail: MTA:
tcp 0 0 127.0.0.2:6082 0.0.0.0:* LISTEN 1914/varnishd
tcp 0 0 127.0.0.2:9000 0.0.0.0:* LISTEN 1317/php-fpm.conf)
tcp 0 0 127.0.0.2:3306 0.0.0.0:* LISTEN 1192/mysqld
tcp 0 0 127.0.0.2:587 0.0.0.0:* LISTEN 3195/sendmail: MTA:
tcp 0 0 127.0.0.2:11211 0.0.0.0:* LISTEN 3072/memcached
tcp6 0 0 :::8080 :::* LISTEN 3086/nginx
tcp6 0 0 :::80 :::* LISTEN 1915/varnishd
tcp6 0 0 :::22 :::* LISTEN 1279/sshd

---

/etc/nginx/site-enabled/default

server {
listen 8080; ## listen for ipv4; this line is default and implied
listen [::]:8080 default ipv6only=on; ## listen for ipv6

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

# Make site accessible from http://localhost/
server_name 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 127.0.0.2;
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 127.0.0.2:9000;
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;
#}
}

---


/etc/nginx/sites-enabled/www.mysite.com.vhost

server {
listen 8080;
server_name www.mysite.com mysite.com.net;
root /var/www/www.mysite.com/web;
if ($http_host != "www.mysite.com") {
rewrite ^ http://www.mysite.com$request_uri permanent;
}
index index.php index.html;
location = /favicon.ico {
log_not_found off;
access_log off;
}
location = /robots.txt {
allow all;
log_not_found off;
access_log off;
}
# Deny all attempts to access hidden files such as .htaccess, .htpasswd, .DS_Store (Mac).
location ~ /\. {
deny all;
access_log off;
log_not_found off;
}
location / {
try_files $uri $uri/ /index.php?$args;
}
# Add trailing slash to */wp-admin requests.
rewrite /wp-admin$ $scheme://$host$uri/ permanent;
location ~* \.(jpg|jpeg|png|gif|css|js|ico)$ {
expires max;
log_not_found off;
}
location ~ \.php$ {
try_files $uri =404;
include /etc/nginx/fastcgi_params;
fastcgi_pass 127.0.0.2:9000;
fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
}

include /var/www/www.mysite.com/web/nginx.conf;
location ~ /nginx.conf {
deny all;
access_log off;
log_not_found off;
}

}

---

/etc/varnish/default.vcl

# This is a basic VCL configuration file for varnish. See the vcl(7)
# man page for details on VCL syntax and semantics.
#
# Default backend definition. Set this to point to your content
# server.
#
backend default {
.host = "127.0.0.2";
.port = "8080";
# .connect_timeout = 600s;
#.first_byte_timeout = 600s;
# .between_bytes_timeout = 600s;
# .max_connections = 800;

---
Note: uncommenting the last four options at default.vcl made no difference.

---


cat /etc/default/varnish

# Configuration file for varnish
#
# /etc/init.d/varnish expects the variables $DAEMON_OPTS, $NFILES and $MEMLOCK
# to be set from this shell script fragment.
#

# Should we start varnishd at boot? Set to "yes" to enable.
START=yes

# Maximum number of open files (for ulimit -n)
NFILES=131072

# Maximum locked memory size (for ulimit -l)
# Used for locking the shared memory log in memory. If you increase log size,
# you need to increase this number as well
MEMLOCK=82000

# Default varnish instance name is the local nodename. Can be overridden with
# the -n switch, to have more instances on a single server.
INSTANCE=$(uname -n)

# This file contains 4 alternatives, please use only one.

## Alternative 1, Minimal configuration, no VCL
#
# Listen on port 6081, administration on localhost:6082, and forward to
# content server on localhost:8080. Use a 1GB fixed-size cache file.
#
# DAEMON_OPTS="-a :6081 \
# -T localhost:6082 \
# -b localhost:8080 \
# -u varnish -g varnish \
# -S /etc/varnish/secret \
# -s file,/var/lib/varnish/$INSTANCE/varnish_storage.bin,1G"


## Alternative 2, Configuration with VCL
#
# Listen on port 6081, administration on localhost:6082, and forward to
# one content server selected by the vcl file, based on the request. Use a 1GB
# fixed-size cache file.
#
DAEMON_OPTS="-a :80 \
-T 127.0.0.2:6082 \
-f /etc/varnish/default.vcl \
-S /etc/varnish/secret \
-s file,/var/lib/varnish/$INSTANCE/varnish_storage.bin,1G"


If you need any other info let me know. I am all out of clue as to whats the problem.