Thanks for the replies guys. Reines, I didn't know about the method of upgrading modules that you described. I also appreciate the reasoning in the link that you shared Vladmir. Much appreciated. One thing about Nginx I do appreciate is how much less painful it is to compile compared to Apache, which you're often best installing via your operating system package manager, in which you're choice of versioning is not great.
I just can't wait for more distributions to abandon those painful legacy init.d scripts in favor of the much less painful alternatives that are much easier to setup. Most have moved away, but I still deal with a lot of older distro's where the biggest pain in setting up Nginx is getting it working as a managed daemon.
Anyway, cheers guys.