Open a terminal, cd to the directory containing nginx.tar.gz . Extract the tarball as ,
tar -czvf nginx.tar.gz
3. change directory and run the script
This will do everything needed to setup nginx, php5, php5-fpm, auto configure and start the services. pfp configs are tweaked to run on a small vps. You could in fact run it on your desktop as well without affecting much of the resources.
I have also included support for mod_rewrite like url rewriting, which is useful for setting up wordpress permalinks etc.