I got it working. You have to update Nginx also.
http://www.cyberciti.biz/faq/linux-unix-bsd-nginx-413-request-entity-too-large/
worked for me too. As an additional note, for thoes not familiar with command line, you have to actually use the command "sudo vi" instead of "vi". It'll ask you to give them a password. This password should have been in your email when you setup forge.
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