Nginx "rewrite or internal redirection cycle while internally redirecting to "/index.html""

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http://serverfault.com – I have pretty much a stock installation of LEMP on Ubuntu server that I was setting up just to host a few static files. When setting up PHPNuke just for testing purposes, I noticed that I didn't have GD support installed. I had nginx set up with php5-fpm so ran "apt-get install php5-gd" to install the GD support libraries. After that though, nginx broke. Uninstalling php5-gd didn't fix it either. I get an error 500 in nginx and the error log comes up with the following: 2013/01/23 13:27:45 [debug] 16943#0: *16 http script var: "/index.html" 2013/01/23 13:27:45 [debug] 16943#0: *16 trying to (HowTos)