Moodle: Nav Menu and Images/Icons are broken out of the box

Installed nginx as http://www.howtoforge.com/installing-nginx-with-php5-and-php-fpm-and-mysql-support-lemp-on-ubuntu-12.10

I got the problem like this

To resolve this,  Site administration > Server > Http.  Find the option 'Slasharguments' and untick it