Enabling HLS encription breaks things

[nfettinger]

I am trying to enable the HLS encryption by following the README, but after I perform this step, the stream stops working/loading.

Here is an example of the script used that works, HLS is not encrypted
sudo /home/pi/picam-1.4.8-binary/picam -o /run/shm/hls --channels 1 --videobitrate 4000000 --vfr --avclevel 3.1 --autoex --time --alsadev hw:0,0 >/var/log/picam.log 2>&1 &

Now, when I change this to enable the encryption (enc.key file already generated), the ngix served page never loads the stream. No errors are given in the log file either. I have tried both the default key and a personal hex key.
sudo /home/pi/picam-1.4.8-binary/picam -o /run/shm/hls --hlsenc --hlsenckeyuri enc.key --hlsenckey f0f1f2f3f4f5f6f7f8f9fafbfcfdfeff --hlsenciv 000102030405060708090a0b0c0d0e0f --channels 1 --videobitrate 4000000 --vfr --avclevel 3.1 --autoex --time --alsadev hw:0,0 >/var/log/picam.log 2>&1 &

Is the stream changing the output path that needs to be updated in the json.conf file? Does the client web browser need to provide the key in some way?

The fact that the log file indicates the "capturing started" with no errors makes me think this could be a ngix issue.