Perhaps you can use a variation of what I did.
I have a number of relatives who go (or went) by their middle names rather than their first names, but I would not really classify their middle names as "nicknames." For example, my grandfather James Claude Green always went by his middle name Claude. I created a new fact called "Name preference," with the associated sentence for reports reading "<He/she> was generally known by <his/her> middle name <value>" -- the value in this case being "Claude."
I usually put a sort date in of the day after the individual's date of birth, so that in automatically generated reports the name preference comes immediately after the report of the person's birth.
-- Mel
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