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Setting up 301 Redirects in Nginx

This may seem like a long explanation, but I have to bring all of this into context. I have recently started using cloud VPS hosting for both my client's websites and even more recently my own websites. The thing to realize about getting your "own server" is that nothing comes preconfigured and you have to setup everything you want to run on the server. This includes the LAMP stack and any other packages like Sendmail or Postfix for e-mail capabilities or other services. I came from using a shared Hostgator hosting account, which has served me very well up to my 13th multisite on my own server. My clients were another story though. I recommended Hostgator to a client that was looking for budget hosting, and we came to find out later that they will need to upgrade to something like a VPS to get the full capabilities out of their Drupal installation. I didn't want to repeat this situation, so I went with a 256MB cloud server from Rackspace for my next client, which seemed to be a great deal. Rackspace is also known for great uptime.