In the Microsoft Dynamics CRM 2011 folder under All Programs, look for Diagnostics

On the Advanced Troubleshooting tab – check the box to enable Tracing

Log files are located at:

Windows XP - Drive:\Documents and Settings\User\Application Data\Microsoft\MSCRM\Traces

Windows Vista, 7 & 8 - Drive:\Users\User\AppData\Roaming\Microsoft\MSCRM\Traces

The result should be three different files:

Managed code trace file
Computername-OUTLOOK-Client-Date-#.log  - example: MyPc-OUTLOOK-Client-20121118-1.log

Unmanaged code trace file
crmaddin-Date.log – example: crmaddin-20121118.log

Event Trace Log file
ComputerName-OUTLOOK-Client-Date-#.etl – example: MyPc-OUTLOOK-Client-20121118-1.etl