I would suggest placing the log file on a separate disk, but should give you a slight increase in performance so that you do not try to read and write to the same disk as on the website. If you cannot put the log file on a separate drive, I would just select the folder of your choice.
In any case, you will need to provide the “Network Service” account “Change” permissions to the desired folder.
If, on the other hand, you have access to the database, then register information there. This will be much faster than accessing the hard drive and will not be publicly available. You can also easily report from the data.
Gatekiller
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