I think I have this same problem. Where did you found that log file?
I see log information in console usually (where I run 'ufoai')...
It seems that you running UFOai under windows. Are you running it by pressing icon?
If it is so, run FAR or get other util for command_line (try any file commander I think).
And then run ufoai.exe (or what you have here)...
And if you running game under linux... 8-[ ] Well, I don't know how to help you. 8->> Try to look any console.