Resolution:
0) (if you have not yet done so)
    a) copy TIspy.jar to c:\tibco\tpcl\5.x\jdbc directory (assume your tibco was installed under c:\tibco)

1) bring up designer and open your BW project, modify your connection url to turn on spy log with timestamp on:
     add the following at the end of the JDBC connection URL:
      ;SpyAttributes=(log=(file)C:\\spylog.log;timestamp=yes);
  
    Ex:
    jdbc:tibcosoftwareinc:sybase://&lthost>:&ltport#>databaseName=&ltdatabaseName>SpyAttributes=(log=(file)C:\\spylog.log;timestamp=yes);

3) please delete c:\spylog.log if it exists

4) run your BW project, you should get a spylog.log.