Using Perusios nginx config works except for rewritten urls ending in .html

Hello

Apologies if this isn't the correct place to post this but I have had an odd problem

I have got perusios nginx config working on a Centos 6.5 server after a some tinkering about. Every thing works bar one issue:

my urls which end in .html

such as

http://test.princesssparkle.co.uk/wedding-hair-accessories.html

don't work and an entry in the error log is written like so

princesssparkle.co.uk/public_html/wedding-hair-accessories.html" failed (2: No such file or directory

however

http://test.princesssparkle.co.uk/wedding-collections

with no .html on the end work no problem

I could rename them but I wonder what has gone wrong since I switched from this config http://wiki.nginx.org/Drupal to the perusio

one the .html urls stopped.

It seems to be looking for .html files expecting them to actually exist or something!

Any ideas appreciated as my eyes are burning now!

Thank you