NGINX as reverse proxy for paster - nginx

Question

We are trying to use nginx as a proxy. We have a pylons framework for our application which uses paster to deliver the resources.
Following is the configuration we have for nginx:
server {
listen 80;
server_name www.vvidiacom.com;
access_log /var/log/nginx/localhost.access_log main;
client_max_body_size 1500M;
root /myhome/myapp/myapp/public;
location /web {
proxy_pass http://192.168.1.124:8080;
proxy_set_header X-Real-IP $remote_addr;
proxy_redirect off;
proxy_set_header X-Forwarded-Host $host;
proxy_set_header X-Forwarded-Server $host;
proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
#proxyPassReverse /web http://myserver:8080;
}
location /media {
proxy_set_header X-Forwarded-Host $host;
proxy_set_header X-Forwarded-Server $host;
proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
proxy_pass http://192.168.1.124:8080/media;
#proxyPassReverse /web http://myserver:8080;
}
#location ~*/(appearance)/ {
# root /myhome/myapp/data;
#proxy_set_header X-Forwarded-Host $host;
# proxy_set_header X-Forwarded-Server $host;
# proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
#proxyPassReverse http://myserver:8080;
# break;
# }
# location ~*(/images\/media|images\/podcasts) {
# root /myhome/myapp/data;
# proxy_set_header X-Forwarded-Host $host;
# proxy_set_header X-Forwarded-Server $host;
# proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
#proxyPassReverse http://myserver:8080;
# break;
# }
# location ~*/(styles|scripts|images)/ {
#root /myhome/myapp/myapp/public;
# proxy_set_header X-Forwarded-Host $host;
# proxy_set_header X-Forwarded-Server $host;
# proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
#proxyPassReverse http://myserver:8080;
# expires max;
# add_header Cache-Control "public";
# break;
# }
#location /__myapp_serve__ {
# alias /myhome/myapp/myapp/data/media;
# internal;
#}
}
Somehow the css files and images are not getting delivered.
We have tried the following mechanisms:
1. Configuring Nginx as a pure proxy where in all the resources would be delivered by paster.
2. Configuring Nginx such that nginx delivers the static resources whereas the rest are delivered by paste.
Both are not working for us. Somehow the static resources (like css, images) are not getting delivered. The scenario we have is as follows with an example:
the file path is actually prefixed by web in the URL:
so if the URL is /web/data/images then the actual path would be $ROOT/data/images.
We were using Apache earlier where the option 1 (as mentioned above was working fine).
We are new to nginx. We would really appreciate if you could please let us know what we are doing wrong and what the reason for the above could be.
Looking forward to your response and help…