Can't Authenticate on nginx Server

I can't connect the iphone app to my nginx server. nginx doesn't use htaccess so the snippets you provide can't be used. I tried to convert them to the nginx version with no luck. This is what I've tried:

if ($http_authorization) {
    rewrite ^(.*)$ /index.php?q=$1&login=$http_authorization break;
}

Any ideas how to make this work?

I've used the test on the admin page and it returns a good response, so everything seems to be working correctly...I just can't authenticate.