Found the problem!!!!
First problem. My OS is Ubunto 11.01, when I installed it as a server setup it automatically installed Apache as well and had set apache to start at boot time. So what happened was Apache, grabbed port 80 before nginx could. Then the second problem occurred when I logged in and tried to restart nginx, for some reason I didn't have the permission as sudo. I'll have to fix that, but now the server is back up and running from boot. Whew!