Alas, Nym is telling the truth, regardless how little sense it makes. I just read that someone has reconstructed one of the deleted quests -- the one where you get the Glory of Suffering, see the thread below -- and it seems that completing that quest would have hinged on discovering that Nym was the one who caused the rift between the elves and dwarfs. Someone on the comp.sys.ibm.pc.games.rpg newsgroup has the whole quest in detail, complete with what everyone says before, during, and after the quest and all the related journal entries. All this material is in the game data. We just never see it in the game itself.
(BTW, the hint book suggests that Nym is telling the truth, but doesn't actually say he is.)
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