http://blast.ncbi.nlm.nih.gov/Blast.cgi?CMD=Web&PAGE_TYPE=BlastDocs&DOC_TYPE=ProgSelectionGuide
It says that nr is under the "Nucleotide Databases for BLAST" section. Which should I download then for nucleotides? I tried telling update_blastdb.pl nt but it said nt was not found.
I was running it in virtual box, that is why it would not find nt.
I'm not sure if this is related to your issue, but the 'blastall' program has been deprecated. The newer versions are a little easier to work with, as a nice bonus. http://www.biostars.org/post/show/1557/help-with-formatdb-and-blast-all/#1558
I tried using it without blastall in the format from the link you gave me and it said it could not find blastn even when I gave the direct path.
I know for sure it is because of the database. I removed the -d option and got the same result, which means it is not finding the locally downloaded pre-formatted NCBI database. how can I get it to find local nr?