In Domino 6.x, the NSD output is generated in different locations, depending on how it is executed. If you create NSD output manually by executing the tool from the DOS prompt, the file will be generated in the Data directory. Administrators can change this default location, using the NSD_LOGDIR Windows environment variable. NSD output will be placed in the directory to which NSD_LOGDIR points.
If NSD is triggered by the panic handling code, in response to a crash, the output is put in the diagnostic directory. The diagnostic directory defaults to the IBM_TECHNICAL_SUPPORT directory under your Data directory, but can be modified by the Logfile_Dir INI parameter. Note that NSD will still be generated in the Data directory, if you manually run it.
An enhancement request was submitted to Lotus software Quality Engineering to have NSD logs by default be written to the IBM_TECHNICAL_SUPPORT directory; however, there are no plans to address this in the 6.x code stream.