Backgroundrb - Connection refused

Problem: getting the connection refused to backgroundrb after switching
from lighttpd to mongrel with mongrel_cluster + ngnix.

Error

ERROR:connection closed
ERROR:Connection refused - connect(2)

*running lighttpd on port 3000 will work
*running via ngnix to the mongrel cluster will get the error
*running via mongrel directly on port 8000 will get the error
*tried the start/stop of order of operation so drb should start first,
etc.
*tried running the client browser from localhost as well and get this
error too.

I would appreciate any help/pointers. I wish I can see some log where
backgroundrdb logged the actual ip of client trying to connection to
give any possible clue.

Env

ubuntu 7.04 on VMWARE ESX 3.5, both RoR run on the same host as drb.

backgroundrb.yml

port: 22222
timer_sleep: 60
load_rails: true
environment: development
host: localhost
database_yml: config/database.yml
acl:
deny: all
allow: localhost 127.0.0.1
order: allow, deny

Thanks,
Mike

Problem found. I thought I did already, but must use IP and not
hostname.

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