If you are using Netscape Directory Server 4.x series, then you should set local.ugldapbinddn equal to "cn=Directory Manager" as this will greatly improve the response time. If you are using Sun ONE Directory Server 5.x then you do not need to worry about this parameter. Though I have seen large sites (2 Million or more accounts) where this setting this to Directory Manager still provides a significant performance improvement. While I dislike setting it to Directory Manager for security reasons, sometimes the performance impact out weighs the risk.