Nginx + Zenphoto = file not found

Good day and Merry Christmas all.

I am trying to setup a little photo gallery for some game screenshots (I am a nerd, as I game I like the occasional screenshot so that I can go back later and enjoy the memories )

I setup a basic Debian VPS (Hostigation), I ran the lowendbox script to clean it up a bit and then to setup php, nginx and mysql - all good works fine.

I installed Zenphoto and that went fine (did it many times!) No errors.

Login to Zenphoto and all is well.

Create a folder (Games), a subfolder (Morrowind) and upload 5 photos (yay!)

I then browse to the site and click my folder and then click my subfolder (so far so good) I see my 5 screenshots and the thumbnails look good and click on one and WHAM! 404 not found!

The url it is trying is: http://blah.domain.com/Games/Morrowind/screenshot01.png.php

looking at the error.log I see:
2011/12/27 03:00:53 [error] 7901#0: *30 open() "/var/www/blah.domain.com/Games/Morrowind/screenshot01.png.php" failed (2: No such file or directory), client: 23.16.XXX.XXX, server: blah.domain.com, request: "GET /Games/Morrowind/screenshot01.png.php HTTP/1.1", host: "blah.domain.com", referrer: "http://blah.domain.com/Games/Morrowind/"

I am using the rewrite rules found here:
http://wiki.nginx.org/ZenPhoto

Any Ideas?

This is a brand new VPS I reinstalled so I can try just about anything,

Thanks!

Luma