Nginx Server with Ruby on Rails application SMTP Authentication Error

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http://serverfault.com – I'm developing a Rails app which when I run it locally, it's able to send emails through a gmail account via smtp. When I moved it to my sever (running Nginx), it comes up with the following error for example when I try to create a new user. Net::SMTPAuthenticationError in UsersController#create 535-5.7.1 Username and Password not accepted. The nginx.conf file remains the same from when I set it up. (HowTos)