Here's the simplest way I've found how to do it. There is also a snippet of Nginx config floating out there for enabling SuperCache (and I assume Total Cache would be easy to implement too). I am able to run 8 FastCGI processes + nginx + MySQL (with InnoDB) on a 256MB VPS, but YMMV. Overall, nginx is awesome.

http://igorpartola.com/web-development/how-to-set-up-nginx-w...