Thanks for the information and sorry for making so many posts and such a fuss over it. I think i may have found the true culprit behind this silly error.
In my Http server section of my nginx config i had this.
#open_file_cache max=900000 inactive=10m;
#open_file_cache_valid 20m;
#open_file_cache_min_uses 1;
#open_file_cache_errors on;
I nulled out my open file cache and what do you know i can restart nginx as much as i like and no issues. :)
So it is open_file_cache that is incompatible with the network sharing feature on windows.