getting error message when uploading a file

I'm getting error the following message when uploading a file.
"An unrecoverable error occurred. The uploaded file likely exceeded the maximum file size (2 MB) that this server supports."

the files I am uploading are not within the maximum size so I decided to look into the error logs to see what was being generated.

FastCGI sent in stderr: "PHP Notice: Undefined index: SCRIPT_NAME in bootstrap.inc on line 250

PHP Notice: Undefined index: REMOTE_ADDR in bootstrap.inc on line 1193" while reading response header from upstream,
client: 222.222.22.222, #My IP is displayed here
server: domain.com,
request: "POST /filefield/ahah/story/field_node_images/0 HTTP/1.1",
upstream: "fastcgi://127.0.0.1:9000",
host: "domain.com",
referrer: "http://domain.com/node/add/story"

I am not sure what to make of this and would be grateful if someone could point me in the right direction.

Extra bit of info - my local site runs fine but I believe this is a problem with my live server set up.

Live server is running:
nginx 0.7.61
php 5.3 with php-fpm

Clean url is working fine.

Is this a php 5.3 problem perhaps?