I followed this tutorial more or less... I installed the passenger gem, executed passenger-install-ginx-module, sucessfully installed nginx and inserted this into the config:
I had the same error until I added passenger_root and passenger_ruby directives in the http block.
Make sure that the user nginx is running as (in most cases 'nobody' or 'www-data') has permission to read the contents of your home directory /home/admin.
Also you can look into the nginx logs and read exactly what the error was.