server {
    listen 80;
    server_name  somewebsite.com;
    access_log /var/log/nginx/somewebsite.com.access.log;

    location / {
      proxy_pass        http://somewebsite.com:2012;
      proxy_set_header  X-Real-IP  $remote_addr;
    }
  }

I tried setting the following in /etc/nginx/sites-available/somewebsite.com:

  server {
  # ... various vars as in http://arclanguage.org/item?id=16317 plus the following:
  client_max_body_size 10m;
  }

In both cases uploading the bzip2 file hangs.

I also tried setting client_max_body_size in /etc/nginx/nginx.conf but there get a different error:

  Restarting nginx: [emerg]: unknown directive "client_max_body_size" in /etc/nginx/nginx.conf:31