how to convert www.example.com/posts/123 to exampl

Question

I am using nginx 1.2.1 running in Ubuntu 12.10

I have followed the solution in https://stackoverflow.com/a/7958540/80353

So my vhosts now look like:

server {
        listen 80;
        server_name www.example.com;
        return 301 http://example.com$request_uri;
}
server {
        listen 80;
        client_max_body_size 5M;
        server_name example.com;
        root /var/virtual/example.com/webroot;
        include common.conf;
        include php.conf;
}

Not sure what I did wrong.

Currently, whenever I do a www.example.com/posts/123, I get 302 to example.com

I was expecting example.com/posts/123

UPDATE:

server {
        listen 80;
        server_name www.example.com;
        rewrite ^(.*) http://example.com$1 permanent;
}
server {
        listen 80;
        client_max_body_size 5M;
        server_name example.com;
        root /var/virtual/example.com/webroot;
        include common.conf;
        include php.conf;
}

common.conf is:

index index.html;

location ~ /\.ht {
        deny all;
}

cakephp.conf is:

include php.conf;

location / {
        try_files $uri $uri/ /index.php?$uri&$args;
        expires max;
        access_log off;
}

php.conf is:

location ~ \.php$ {
        fastcgi_pass 127.0.0.1:9000;
        include fastcgi_params;
}

index index.php;