Hi @mediasync,
When creating a live media entry, for Live Stream Type, select “Manual Live Stream URLs”, provide a meaningful name for the entry, for example “My Live Test”, and input “http://$YOUR_NGINX_HOST:$NGINX_PORT/hlsme/$DESIRED_STREAM_NAME.m3u8” in the “HLS stream URL” text box.
The “Kaltura Live Streaming” option is meant to work with Wowza, which is not FOSS.
Please see https://blog.kaltura.com/free-and-open-live-video-streaming/ for a step by step walk-through of this solution which utilises the FOSS Nginx RTMP module.
Let me know if you have additional questions,