By the way, I used this guide:
http://vladgh.com/blog/install-nginx-an ... on=node/18
(you might need to create a dummy login to read, just put a junk email address and you will see it without having to go through the whole registration process - it's quick, honest)
The reason I used that at the time was because I wanted a working nginx installation with those other options and the feedback on his method was very good, some of it from some well known & respected commentators. So I thought I would go with his method as it got me what I wanted in my LEMP stack. It's actually worked really well and I am happy with it.
The trouble came when I then needed to add something and because I didn;t understand properly the process I followed, I was stuck. I didn't realise that making something didn't mean a full recompile. In the old days (when I used make to compile assembly language into machine code) it meant you were doing the whole thing again.
So, I now understand (from your help explanation) that it seems to only recompile the bit you are working on - which is definitely more intuitive.
I just thought I would add that so you knew where I was coming from as it was maybe a bit confusing
Thanks again for your help - it is much appreciated and has saved me valuable time
EDIT: Oh and also, another reason for compiling and not using my distro builds is that I need some of the newer features. For example, the postgresql version with distro is 8.4. Version 9.0 introduces a feature that is absolutely key to what I am doing - replication with slave read servers allowing a hot swap.