Nginx Search Engine Friendly URLs and state dropdown

[uniqbuy]

I have posted this elsewhere but I have now done a vanilla install of Joomla 3.3 and Virtuemart 3.0.6.2 and I cannot get this to work. This is a problem only with Nginx and SEF URLs enabled.

I am running this on a 2GB VPS with Centos 6.5, Virtualmin (control panel), MariaDB 5.5, PHP 5.6.7, Nginx 1.6.2. I have added my config files and some screenshots of enabled features in Joomla. I have left it all as is - not changed anything from base install. Tried on Beez3 template aswell as Protostar. Doesn't seem to be any Beez5 on Joomla 3.3

The problem is fairly major as you cannot add an address - the state dropdown does not work. You can try it for yourself at http://www.ubvps.co.uk

These are the options I have tried for the Nginx SEF processing (in nginx.conf), all without succes:

Recommended by Joomla and works on Centos.

location / {
                expires 1d;
                # Support Clean (aka Search Engine Friendly) URLs
                try_files $uri $uri/ /index.php?q=$request_uri;
                }

Recommended by Joomla but does not work on Centos.
location / {
                # Support Clean (aka Search Engine Friendly) URLs
                try_files $uri $uri/ /index.php?q=$request_uri;
      }

Found it on a Wedpress thread but doesn't work for Joomla
location / {
                expires 1d;
                # Support Clean (aka Search Engine Friendly) URLs
                try_files $uri $uri/ /index.php?$args;
                }

Hope someone can help.

I will only be keeping this site up for a week or so before I am going to give Centos 7 and Apache 2.4 a go.