Thank you for the explanation! I managed to get diamond to work, but I'm having trouble getting it to run faster than blast. For a single test sequence, local blastp takes about 5 minutes, while diamond blastp took a little over 15 mins. Running the same sequence on the blast web server took 10 seconds or so. So I guess now the question becomes: how do I optimize the ratio of number of sequences per file and the number of CPUs for diamond...
I have a file with 100 sequences running with diamond, but I'll have to wait a lot longer to see how long it takes. Blastp was able to do ~40 sequences in 16 hours with a single CPU.