faye private_pub rails ubuntu connection refused - ruby-on-rails

Question

So I tried to set up a rails app using Bryan Bate's private_pub gem (a wrapper for the faye gem) to create chat channels. It works great on my local machine in dev mode.
I'm also booting up the private_pub server on port 8080 at the same time my rails app starts by including a initializer file with the lines:
Thread.new do
system("rackup private_pub.ru -s thin -E production -p 8080")
end
however, after deploying to aws ec2 ubuntu instance with the nginx webserver and puma app sever, the chrome console keeps showing this every 2 seconds, and the real time chat features don't work.
GET http://localhost:8080/faye.js net::ERR_CONNECTION_REFUSED
If I open port 8080 in my aws security group, I can see the big chunk of javascript code in faye.js using curl from localhost:8080/faye.js when I ssh into the instance. I can also access it from my browser if I go to http://my.apps.public.ip:8080/faye.js. I can't access it if I remove 8080 from the security group, so I don't think this is an firewall problem.
Also, if I change the address from localhost to 0.0.0.0 or the public ip for my ec2 instance, the chrome console error is gone, but the real time chat is still not working.
I suspect I might have to do more configuration to nginx because all I have done so far to configure the nginx server is in /etc/nginx/sites-available/default, I have:
upstream app {
server unix:/home/deploy/myappname/shared/tmp/sockets/puma.sock fail_timeout=0;
}
server {
listen 80;
server_name localhost;
root /home/deploy/myappname/public;
try_files $uri/index.html $uri #app;
location / {
proxy_set_header X-Forwarded-Proto $scheme;
proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
proxy_set_header X-Real-IP $remote_addr;
proxy_set_header Host $host;
proxy_redirect off;
proxy_http_version 1.1;
proxy_set_header Connection '';
proxy_pass http://app;
}
location ~ ^/(assets|fonts|system)/|favicon.ico|robots.txt {
gzip_static on;
expires max;
add_header Cache-Control public;
}
error_page 500 502 503 504 /500.html;
client_max_body_size 4G;
keepalive_timeout 10;
}
But maybe this has nothing to do with nginx either, I'm pretty lost. Has anyone experienced this or could suggest an alternative solution? I could post any additional config files here if needed.

Answer 1

Solved
first I took Ian's advice and set server_name to my public ip
then
based on guide from http://www.johng.co.uk/2014/02/18/running-faye-on-port-80/
I added the location block
location ^~ /faye {
proxy_pass http://127.0.0.1:9292/faye;
proxy_redirect off;
proxy_set_header Upgrade $http_upgrade;
proxy_set_header Connection "upgrade";
proxy_http_version 1.1;
proxy_buffering off;
proxy_cache_bypass $http_pragma $http_authorization;
proxy_no_cache $http_pragma $http_authorization;
}
finally, for my private_pub.yml I set the faye entry point for production:
production:
server: "http://my.public.ip:80/faye/faye"
secret_token: "mysecrettoken"
signature_expiration: 3600 # one hour
and now the chatting in my app responds much faster than when I was using the remote standalone chat server I put on on heroku because both the chat server and my main app is running in the same instance.