I tried setting the following in /etc/nginx/sites-available/somewebsite.com:
# ... various vars as in http://arclanguage.org/item?id=16317 plus the following:
In both cases uploading the bzip2 file hangs.
I also tried setting client_max_body_size in /etc/nginx/nginx.conf but there get a different error:
Restarting nginx: [emerg]: unknown directive "client_max_body_size" in /etc/nginx/nginx.conf:31
Update: Tried setting "client_max_body_size 32m;" under the "http" section in /etc/nginx/nginx.conf but posting still hangs.
Sorry this took so long.