Nginx-RTMP not working... Help!

Hello all, this is my first post on the forums.
As the title suggests, I am having some problems getting Nginx with RTMP module working for me. What I am trying to do is setup my server so that a friend of mine would be able to stream to me, so I can combine his feeds with mine using OBS, with the final destination being Twitch.tv.

Now, I have managed to configure the server using to forward my stream to Twitch, however, I can't seem to be able to view the stream with something like VLC. In VLC, I enter 'rtmp://<my server address>/live' into the dialog box.

When I do this, I get this error:

avcodec error: Failed to open rtmp://<my server address>/live: Input/output error
main debug: no access modules matched
main error: open of `rtmp://<my server address>/live' failed
main debug: finished input
main debug: dead input
main debug: changing item without a request (current 4/5)
main debug: nothing to play
qt4 debug: IM: Deleting the input

The following is what is added to my Nginx.conf file (basically the vanilla add in):

rtmp {
server {
listen 1935;
chunk_size 4096;

application live {
live on;
record off;
}
}
}

Note: I have rmoved the line under 'record off;' that forwards my stream to twitch.

So I really don't know what to do in this case. I want to use VLC to view the stream for now, although i am looking at JWPlayer to embed on a webpage hosted on my server, but this will probably come later when I have a better idea on how HTML works.

Please also note that where you see '<my server address>' I have not forgotten to change it, I am just hiding the servers IP

Thanks!