nginx rewrite rules for Joomla!

Question

I've got nginx installed on Ubuntu from the repository (v0.7.65), and while with my default site configuration works wonders with WordPress pretty URLs and nginx-compatibility plugin (so far), it doesn't with Joomla!.

I got it to show me the index, the administrator, and one level below links. That is, if I access http://localhost/joomla/joomla-overview, it works just nice (with friendly URLs and Apache mod_rewrite enabled in Joomla!), but if I try http://localhost/joomla/joomla-overview/what-is-new-in-1-5, I get an error.

What do you think is happening here? Do you know other settings to make it work, preferably within the environment I have it now?

Thanks in advance for your support.