When compared to open-loop configuration, full-scale wind turbine nacelle testing with Hardware-In-the-Loop (HIL) configuration allows for coupled electro-mechanical as well as full operational certification tests with the native nacelle controllers. This configuration requires a full turbine real-time simulation running in parallel to the nacelle under test. In this study, a baseline simulation model is used to investigate the nacelle fidelity necessary to capture dynamic characteristics of interest while meeting the real-time requirements. The same model is also utilized to understand the influence of different boundary conditions seen by the nacelle when mounted on a test bench without a rotor, tower, and platform. The results show that the torsional dynamics are mainly governed by the flexibility of the main shaft and the gearbox supports. It is also demonstrated that the abstraction of the nacelle leads to a torsional frequency shift and higher frequency content in component responses necessitating compensation techniques for proper implementation of HIL testing.