From http://www-10.lotus.com/ldd/nflsblog.nsf/dx/NSD_Updates
Information about NSD updates
A heads-up about NSD …
Incompatibilities between existing NSD Updates and some hotfixes have prompted a change in recommendations about upgrading your version of NSD. Support will now provide a new version of NSD when supplying any Notes/Domino 7.0.3 or 8.0 hotfix. For other versions of Notes/Domino, a newer version of NSD will be provided (if necessary) based on other changes in the hotfix. NSD provided as part of a hotfix should always be used. NSD Updates from the Support site should not be installed when a hotfix contains NSD. To determine if a hotfix contains NSD use -contents on Windows platforms (eg. 703HF123_W32 -contents) or in the MANIFEST file on Unix.
The information is discussed in greater detail in the following technote:
Technote #1233676
Excerpt:
Note - If you are running a hotfix that contains NSD, coordinate with IBM Support Engineers to determine if you require a customized version of the NSD Update.
Date
Topic
Frequently asked question - How to analyze Notes/Domino NSDs? (Jean-Yves Riverin)
Thank you,
JYR