"Many conspiracy theorists point to FEMA's preliminary report, which said there was relatively light damage to WTC 7 prior to its collapse. With the benefit of more time and resources, NIST researchers now support the working hypothesis that WTC 7 was far more compromised by falling debris than the FEMA report indicated. 'The most important thing we found was that there was, in fact, physical damage to the south face of building 7,' NIST's Sunder tells PM. 'On about a third of the face to the center and to the bottom--approximately 10 stories--about 25 percent of the depth of the building was scooped out.'NIST also discovered previously undocumented damage to WTC 7's upper stories and its southwest corner."http://tinyurl.com/j7vrn
Note: According to the December, 2006 NIST presentation “WTC 7 Technical Approach and Status Summary,” NIST has updated its assessment of the south face damage. Details will appear in the final report.
Good WTC 7 South face damage analysis, with more photos, at Debunking 9/11 Myths. Be sure to watch the video "New video shows the gash on the south side of building 7"