I've tested with 1.2.7-0ubuntu0ppa2~lucid and it's still broken.
The problem is the init scripts are looking for the pid in /var/run Nginx is creating the pid in /run On lucid /run isn't symlinked to /var/run
So the init scripts for lucid need to use /run or nginx needs to use /var/run for it's pid.
Note the logrotate script also checks /var/run so if you change the init scripts logrotate will need updating too.
I've tested with 1.2.7-0ubuntu0p pa2~lucid and it's still broken.
The problem is the init scripts are looking for the pid in /var/run
Nginx is creating the pid in /run
On lucid /run isn't symlinked to /var/run
So the init scripts for lucid need to use /run or nginx needs to use /var/run for it's pid.
Note the logrotate script also checks /var/run so if you change the init scripts logrotate will need updating too.