Can you remove a logfile on linux/unix while something is using it? Of course you can but the open file will stay around in limbo. It wont free up space, the program that holds it open will write to the deleted file, etc. Most linux programs will let you send it a nohup and it will close and reopen the logfile, that's something I haven't a clue about on windows.
I still pipe logs to a separate process that checks if the logfile is deleted and reopens/creates the logfile, its just easier.