nginx + magento unable to edit categories - nginx

Question

Magento ver. 1.7.0.2
Issue
I'm unable to edit/delete categories in magento which is running on nginx instance. Has anybody encountered such issues, Google search turns up with solutions that don't work.
Nginx Configurations
server {
listen 80;
server_name localhost;
client_max_body_size 20M;
access_log log/access.log main;
error_log log/error.log;
root /www/public_html;
index index.php index.html index.htm;
gzip on;
gzip_disable "msie6";
gzip_comp_level 6;
gzip_min_length 1100;
gzip_buffers 16 8k;
gzip_proxied any;
gzip_types text/plain application/xml text/css text/js text/xml application/x-javascrip text/javascript application/json application/xml+rss;
location / {
try_files $uri $uri/ #handler;
expires 30d;
}
include web_default_params;
location ^~ /includes/ { deny all; }
location ^~ /lib/ { deny all; }
location ^~ /media/downloadable/ { deny all; }
location ^~ /pkginfo/ { deny all; }
location ^~ /report/config.xml { deny all; }
location ^~ /var/ { deny all; }
location #handler {
rewrite ^(.*) /index.php?$1 last;
}
location ~ \.php$ {
include fastcgi_params;
fastcgi_pass backend-php;
fastcgi_split_path_info ^(.+\.php)(/.*)$;
fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
fastcgi_param QUERY_STRING $query_string;
fastcgi_param PATH_INFO $fastcgi_script_name;
fastcgi_param HTTPS off;
}
}

Answer 1

After changing the following configuration
location #handler {
rewrite ^(.*) /index.php?$1 last;
}
to
location #handler {
rewrite / /index.php;
}
and included the following
(## Forward paths like /js/index.php/x.js to relevant handler)
location ~ \.php/ {
rewrite ^(.*\.php)/ $1 last;
}
the issue disappeared