====== Installing with Lighttpd and FastCGI ======
If you are familiar with Lighttpd, it does not support .htaccess, thus the out of the box magento installation won’t work. Never fear, however, for a simple server configuration change makes it all better.
<code php>
$HTTP["host"] =~ "^(www\.)?example\.com$" {
        server.name     = "www.example.com"
        server.document-root  = "/var/www/example.com/magento/"
        server.error-handler-404 = "/index.php"
} 
</code>
Essentially, this forwards all non-existent urls in index.php for routing. Simple.