Getting 404 on Nginx on EC2 and meteor - node.js

Question

I am having a weird issue with nginx throwing a 404 error on javascript files.
See it here:
http://ec2-54-85-163-197.compute-1.amazonaws.com/
Because the meteor application throws a 404, press escape and view the source of the page because meteor has javascript that redirects the entire page if javascript fails to load (A complete fail by meteor IMHO)
You will find that I am properly proxying from port 3000 running node to port 80 through the rendering of the main page.
If you go to http://ec2-54-85-163-197.compute-1.amazonaws.com:3000/, you will see the hello world render just fine.
My /etc/nginx/nginx.conf is the default conf file.
Here is the file /etc/nginx/sites-available/ec2-54-85-163-197.compute-1.amazonaws.com
server {
listen 80;
server_name ec2-54-85-163-197.compute-1.amazonaws.com;
root /home/meteor/can_i_help_you/can_i_help_you;
access_log "/home/ubuntu/logs/access.log";
error_log "/home/ubuntu/logs/error.log" error;
charset utf-8;
default_type application/octet-stream;
sendfile on;
# would be awesome if your mobile-app can utilize keep-alives!
keepalive_timeout 65;
# enable gzip
gzip on;
gzip_comp_level 6;
gzip_vary on;
gzip_min_length 1000;
gzip_proxied any;
gzip_buffers 16 8k;
# we only gzip these mime-types (since there's no use to gzip jpegs)
gzip_types text/plain text/css application/json application/x-javascript text/xml application/xml application/xml+rss text/javascript;
# tell-client to cache all 'assets'
location ~* \.(?:jpg|jpeg|gif|png|ico|gz|svg|svgz|mp4|ogg|ogv|webm)$ {
expires 1M;
access_log off;
add_header Cache-Control "public";
}
# disable logging for some `common` files
# Disable logging for favicon
location = /favicon.ico {
log_not_found off;
access_log off;
}
# Disable logging for robots.txt
location = /robots.txt {
allow all;
log_not_found off;
access_log off;
}
# Prevent clients from accessing hidden files (starting with a dot)
location ~* (^|/)\. {
return 403;
}
# Prevent clients from accessing to backup/config/source files
location ~* (\.(bak|config|sql|fla|psd|ini|log|sh|inc|swp|dist)|~)$ {
return 403;
}
# reverse-proxy here, if your have multiple machine/cores would be better to use UPSTREAM so nginx can load-balance requests
#try_files $uri $uri/ #silly;
location / {
proxy_http_version 1.1;
proxy_set_header Upgrade $http_upgrade;
proxy_set_header Connection "upgrade";
proxy_redirect off;
proxy_set_header X-Real-IP $remote_addr;
proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
proxy_set_header X-Forwarded-Proto $scheme;
proxy_set_header Host $http_host;
proxy_set_header X-NginX-Proxy true;
proxy_set_header Connection "";
proxy_pass http://ec2-54-85-163-197.compute-1.amazonaws.com/;
}
#location / {
# proxy_set_header X-Real-IP $remote_addr;
# proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
# proxy_set_header Host $http_host;
# proxy_set_header X-NginX-Proxy true;
#
# proxy_pass http://ec2-54-85-163-197.compute-1.amazonaws.com:3000/;
# proxy_redirect off;
#}
}