You probably have an error in the ones you are removing. There shouldn't be any practical limit to the number of parameters. Depending on when the error occurs, nothing may show up in the server.log file. Maybe try starting up with the server in the foreground:
/path/to/nsd -ft /path/to/config/nsd.tcl
If you are starting up with daemontools svc command try:
# svc -d /path/to/run
# svc -o /path/to/run
# ps axww|grep readproctitle
The last 400 chars or so of output from the service process will be displayed.
