Granted I'v had a several problems with...

Granted I'v had a several problems with... nginx/1.0.15 (I know the stable version is 1.2.0) and the one being used is legacy but this is hosting company so I have no decision making power over this aspect of the server config. That said here is the issue:

I only have the Administration Menu module installed and Every other page I load the menu stops loading correctly and it only shows
^ | Content | Structure | Appearance | People | Modules | Configuration |
the only way to temporary fix the menu (until next reload) is by flushing the cache. Admitted that I am a pretty noob at this but I can tell you for a fact that I did not run into this issue when I was running Apache 2.2.21. Unfortunately, there is very little documentation about nginx and how to config it for drupal 7.

More info: (maybe unrelated issue) With a full blow setup and content I get a lot of 504 Time Out errors and WSOD
The status Report:
Drupal 7.12
Access to update.php Protected
CTools CSS Cache Exists
Configuration file Protected
Cron maintenance tasks Last run 10 min 59 sec ago
Database system MySQL, MariaDB, or equivalent
Database system version 5.1.62-cll
Database updates Up to date
Drupal core update status Up to date
File system Writable (public download method)
GD library PNG support bundled (2.0.34 compatible)
GD library rotate and desaturate effects bundled (2.0.34 compatible)
Module and theme update status Up to date
PHP 5.3.3 (more information)
PHP extensions Enabled
PHP memory limit 256M
PHP register globals Disabled
Unicode library PHP Mbstring Extension
Update notifications Enabled
Upload progress Not enabled
Your server is not capable of displaying file upload progress. File upload progress requires an Apache server running PHP with mod_php.
Web server nginx/1.0.15