here\'s my web.config, running a WCF service in an application on IIS7, but nothing is being written to the specified file. permission on the file has been granted for ever
Make sure you have configured both the system.diagnostics and the System.serviceModel/diagnostics sections configured.
Make sure you have them configured in the correct App.config/Web.config file. The thing to note is that multiple config files may exist in a project, and the one used depends on the Build Configuration.
Personally I had the very same symptom until I noticed that I put the sections under app.config (in my case, client side tracing), instead of app.DebugLocal.config. The later was used as my build configuration was set to DebugLocal.