And, the debug.err file is located in your main game folder, usually C:\Program Files\Stardock\TotalGaming\GalCiv2.
It can be opened with Notepad, it is a plain text file.
This is what the first part of it looks like, and the intelligence level is at the end of what I copied into the post:
Debug Message: Version v1.4x last updated on: Mon Oct 23 17:43:56 2006
Debug Message: GalCiv2 is activated.
Debug Message: Checking DX Version.
Debug Message: *********DXDiag info follows.*********
System Info
Time: 11/3/2006, 01:54:20
DirectX Version: DirectX 9.0c (4.09.0000.0904)
Machine Name: MOOSE2
Operating System: Windows XP Professional (5.1, Build 2600) Service Pack 2 (2600.xpsp_sp2_gdr.050301-1519)
Languages: English (Regional Setting: English)
System Manufacturer: HP Pavilion 061
System Model: EL409AA-ABA M7360N
BIOS: Phoenix - AwardBIOS v6.00PG
Processor: Intel(R) Pentium(R) D CPU 2.80GHz (2 CPUs)
Physical Memory: 3070MB RAM
Page File: 283MB used, 3397MB available
Windows Dir: C:\WINDOWS
Display Info
Display device 1:
Device Name: \\.\DISPLAY1
Card Name: NVIDIA GeForce 6800 GS
Manufacturer: NVIDIA
Chip Type: GeForce 6800 GS
DAC Type: Integrated RAMDAC
Key Device: Enum\PCI\VEN_10DE&DEV_00C0&SUBSYS_C3893842&REV_A2
Display Memory: 256.0 MB
Current Display Mode: 1280 x 1024 (32 bit) (75Hz)
Monitor Name: HP vs17 flat panel monitor
Monitor Max Resolution: 1280,1024
Driver Name: nv4_disp.dll
Driver Version: 6.14.0010.9147
Driver Date: 8/11/2006 20:42:52
DirectX Acceleration Enabled: Yes
Sound info
Sound device 1:
Description: SB Audigy 4 [DF00]
Default Sound Playback: Yes
Default Voice Playback: Yes
Hardware ID: PCI\VEN_1102&DEV_0008&SUBSYS_10211102&REV_00
Manufacturer ID: 1
Product ID: 100
Driver Name: ctaud2k.sys
Provider: Creative
Driver Version: 5.12.0001.1161
Driver Date: 6/17/2005 21:53:28
Type: WDM
Other Drivers:
Acceleration Level: 3
Cap Flags: 0
Min/Max Sample Rate: 0, 0
Debug Message: *********END dxdiag info.*********
Debug Message: Entering WinMain
Debug Message: ******* Starting Game Shell *******
Debug Message: Going Fullscreen
Debug Message: Preparing to change display settings.
Debug Message: Using multilsample setting: D3DMULTISAMPLE_4_SAMPLES
Debug Message: Game Resolution: 1280 x 1024
Debug Message: Running fullscreen.
Debug Message: HAL (hw vp): NVIDIA GeForce 6800 GS
Debug Message: D3DPRESENT_INTERVAL_DEFAULT
Debug Message: Refresh rate: 75
Debug Message: Bit Depth: 32 bit.
Debug Message: *********Checking D3DDevice Caps***********************
Debug Message: A full-color cursor is supported in hardware at high resolution modes.
Debug Message: RGB in format 6:6:6, Masks reported as ff0000:ff00:ff
Debug Message: Now Fullscreen
Debug Message: Shell initialization complete
Debug Message: ***** Initializing Game *****
Debug Message: Timer Frequency is 0 a6f1bb60
Debug Message: Initializing sound card.
Debug Message: initailizing bink
Debug Message: No string tables in C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM/Data/*.str
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Movies\*.bik
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Movies\techs\*.bik
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Gfx\*.png
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Gfx\Race\*.png
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\sfx\*.wav
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Music\*.mp3
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Event Music\*.mp3
Debug Message: Create setup screens.
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: * Collectors Edition *
Debug Message: Set mouse.
Debug Message: Set update timer.
Debug Message: Clear data definitions.
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\ShipDefs\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Gfx\Planets\C0*.png
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\PlanetImprovements\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\TerrainColorSchemes\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\PlanetDescriptions\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\Anomalies\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\Events\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\UPIssues\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\Invasions\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\PoliticalParties\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\StarTypes\*.xml
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\StarbaseModules\*.xml
Debug Message: Reading Star Names
Debug Message: Reading Star Names... Done
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\CustomMaps\*.gc2map
Debug Message: No files found matching mask C:\Program Files\Stardock\TotalGaming\GalCiv2\Mods\KHSM\Data\Scenarios\*.gc2scenario
Debug Message: Creating Galaxy
Debug Message: Killing threads.
Debug Message: Kiling civs.
Debug Message: Killing ships.
Debug Message: Killing rallypoints.
Debug Message: Killing misc objects.
Debug Message: Killing stars.
Debug Message: Killing anomalies.
Debug Message: Killing space resources.
Debug Message: Killing colonies and planets.
Debug Message: killing scenario.
Debug Message: Clearing Turn Event Log
Debug Message: Clear galaxy settings.
Debug Message: Clear influence.
Debug Message: Clear up laws.
Debug Message: Clear first time events.
Debug Message: Clear wonders and trade goods.
Debug Message: Clear sector mapper.
Debug Message: Galaxy Size Set: 18 x 18
Debug Message: Creating Random Map
Debug Message: Creating Random Map... Stars
Debug Message: Number of Unplaced Stars: 4.
Debug Message: Creating Random Map... Planets
Debug Message: *************** Failed To Place Planet ***************
Debug Message: Creating Random Map... Anomalies
Debug Message: Num Anomalies: 300
Debug Message: Creating Random Map... Resources
Debug Message: Creating Random Map... Done
Debug Message: Setting Game Options
Debug Message: Creating Civs
Debug Message: Terran Alliance: Intellence -> 150
Debug Message: Drengin Empire: Intellence -> 150
Debug Message: Altarian Republic: Intellence -> 150
Debug Message: Arcean Empire: Intellence -> 150
Debug Message: Torian Confederation: Intellence -> 150
Debug Message: Yor Collective: Intellence -> 150
Debug Message: Dominion of Korx: Intellence -> 150
Debug Message: Drath Legion: Intellence -> 150
Debug Message: Meese: Intellence -> 150