Upgraded to NSD 4.0 Perfect - all is working well.
I have just one question as far as an error in my logs popping up that
does not make much sense
02/11/2013 18:58:45.794 nsd[10655]: /usr/local/etc/nsd.pid: file too short
This is the error that nsd.db file has been shortened somehow, and it
creates the nsd.db file anew. So, you entered the nsd.pid filename into
the database: configuration value. And also as pid file I guess. Then
nsd creates a database and overwrites it with a very short pidfile.
Next time it tries to read this and it is too short, it recreates the
nsd.db from master zonefiles and zone transfers for secondary zones,
this is why everything seems to be working well.
To summarize, your 'nsd.db' file is getting corrupted (too short), and
it seems you named the nsd.db file '/usr/local/etc/nsd.pid', probably a
mistake in nsd.conf.