@jordantallent:
Well I made it this far also with nginx 1.10.1 on a Pi3 and got the same error as you. The solution which worked for me is deleting the current content of ngnix.conf before adding the new config contents. Then it worked fine to this point (make sure you restart nginx after the change: sudo service nginx restart ). I'm sure Felix spends a lot of time trying to make it work for all possible idiots. Missed one (me)
The change is in red below. Now to see if I can press on to get the remaining steps working on the Pi3.
sudo nano /etc/nginx/nginx.conf
Delete the current nginx.config file contents and then Dump this configuration in the nginx.config file, and save it: