Practically the first two pages I read when starting with nginx were:

http://wiki.nginx.org/Pitfalls

which says "putting Root inside Location Block is BAD" - don't do it.

and

http://nginx.org/en/docs/beginners_guide.html

which gives this as its example of a config file:

The resulting configuration of the server block should look like this:

server {
location / {
root /data/www;
}
location /images/ {
root /data;
}
}

So I'm wondering which is right?

Cheers,
chrisrob