Internet Backup Nginx - Error Receiving Challenge Packet

I am trying to set up Internet Backups using nginx:

Here is my nginx config:

server {
listen 8080;
server_name xx.servername.xx;

location / {

   access_log off;
   proxy_pass http://internal.ip:8080;
   proxy_set_header X-Real-IP $remote_addr;
   proxy_set_header Host $host;
   proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;


When I view the logs on the client I get “Error Receiving challenge packet InternetClient: Had an auth error”

I have port forwarding enabled and pointing to the nginx server, if I point the port forward rule to my urBackup server, it works fine. The reason I am doing it via nginx and not directly to the server is I need to set up multiple servers for multiple clients and want to use nginx to direct the correct clients to their servers. Does anyone have any recommendations on this? Any help is greatly appreciated!

You need to support proxy via “CONNECT”. For nginx I guess you need this:

Also, be careful, I think the example configuration on that page shows an open proxy…

thanks for this, I install the module and verified that its working and am still getting the same error on the client “Error Receiving challenge packet InternetClient: Had an auth error”

I am not sure nginx will work for this, I am looking into doing this with apache. Any suggestions would be greatly appreciated!