I am not hosting administration expert, nor intent to make this tutorial post as generic as it would work for everybody. Since the stack: Nginx + PHP-FPM + APC + Memcache + Drupal 7 is quite on the cutting edge at the moment (Oct.2010), and there is not many 'master' tutorials available. Therefore, I am writing down my notes here for sharing.
This note is also reviewed and improved by Eric E Moore from Brandorr Inc
I got a bare-bone Debian 5 from linode.com, then, here is how it goes: