it does look like there are some fundamental config issues causing problems.
After I posted I spun up a clean VPS and installed openresty with memc
support in about 15 minutes so can confirm my problem its somehow related to
updating my primary machine setup.
Thanks for your pointers and info, your documentation and contribution to
nginx is awesome Agentzh.

Posted at Nginx Forum: 
http://forum.nginx.org/read.php?2,247877,247880#msg-247880

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