So I had this issue recently, I had a WordPress site on the main domain, and another WordPress install for some member stuff in a subdirectory/folder inside the main install. The main site worked fine, and the admin panel etc. But when you tried to change the Permalinks, everything got a 404 error.
I noticed that all requests were being routed back to the main domain (without the additional folder) so I guessed it was probably something to do with nginx, most likely this:
location / {
# This is cool because no php is touched for static content
try_files $uri $uri/ /index.php?$query_string;
}
Which broke the rewrites inside the folder and sent everything to the main site, to get it working I had to add a couple more location directives for the sub-directory – now all different kinds of Permalink configs work.
This got the site working just fine:
location /subinstall {
root /home/maindomain.com/public_html/subinstall;
index index.php index.html index.htm;
try_files $uri $uri/ @wp;
}
location @wp {
rewrite ^/subinstall(.*) /subinstall/index.php?q=$1;
}
With /subinstall being the name of the sub-folder with the 2nd WordPress install.
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