Nginx gives an Internal Server Error 500 after I have configured basic auth

Question

I am trying to do basic auth on Nginx. I have version 1.9.3 up and running on Ubuntu 14.04 and it works fine with a simple html file.

Here is the html file:

Answer 1

I just had the same problem - after checking log as suggested by @Drazen Urch I've discovered that the file had root:root permissions - after changing to forge:forge (I'm using Forge with Digital Ocean) - the problem went away.