There is a rich diagnostic logging facility in MOSS which can provide us with a powerful set of data in order to drill deeper into problems or allow us to observe what is happening under the hood. Diagnostic logging is one of the most important tools we have when it comes to troubleshooting support issues. In this post I will focus on the trace and event logging configured in Central Administration.
By default logging is enabled and it is configured to capture a base set of categories and events that will cover the majority of MOSS operations and tasks.
We configure diagnostic logging in Central Administration, Operations. Under Logging and Reporting choose Diagnostic logging. The sections that I will discuss are Event Throttling and Trace Log.
Event Throttling
This is where you can choose from a set of categories that correspond to MOSS components and features. If you select the drop down list you will see a full list of all categories (there are about 80 or so). You can also choose the event log and trace log severities for each of your chosen categories. By default the event level for the majority of categories for the event log is "Error" and the event level for the trace log is "Medium". Some of the search categories are "Monitorable" rather than "Medium" for the trace log.
You can change the event log and trace log levels for a specific category. See screen shots below :

Under most circumstances you should leave the logging levels at their defaults. When looking at a specific issue, you may want to change the trace log level to Verbose and the event log level to Information. However these changes should be reversed once you are done with analysing your problem. You can reset logging back to default levels by using stsadm -o setlogginglevel -default
You can also configure logging via stsadm with even greater flexibility, see below :
Trace Log
Under here you can control trace log settings. The default location is under the 12 hive and we keep 96 logs with each log being used for 30 minutes. That means we maintain logs for 48 hours. The settings here are usually sufficient, however you may want to change the number of log files if you are troubleshooting a specific issue over a longer period of time. If you do this watch disk space usage (see below).
Things to note :
1. The trace logs can consume a large amount of disk space. By default we use a .log file for 30 minutes and maintain 96 logs. How big that log file will become over 30 minutes will depend on server activity and how logging is configured (settings categories to Verbose will create large logs). You could end up with .log files of several hundred MB. Multiply that by 96 and you could be consuming several GB's of disk space.
2. Trace logs are written in English, they are not localised.