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Multi-instance means running more than one InDesign Server process on the same machine. It is not dependent on the number of processors the machine has. So you could run 3 processes on a single processor machine, etc.
Each process logs it's errors by writing them to stderr/stdout. You can redirect this whereever you would like. Errors are also logged to an in memory so that they could be accessed from a plug-in.
I see. Thank you Michael.
I just wondered about a sentence written in "InDesign Server CS2 frequently asked question".
"Multiple instances : InDesign Server CS2 increases performance by supporting multiple, concurrent instances on one-, two-, and four-processor machines."
So I think there's a relationship between multi instances and multi cpu. Sorry if I missunderstand about this sentence.
Obviously you will get more performance gain from running multiple instances on a multiprocessor machine.