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This looks great, hopefully Splunk will get some competition. Its a great tool but its far-far-far too expensive for the typical startup team.

+1 for loggly -- check out logstash http://code.google.com/p/logstash/

Be sure to check out Jordan Sissel's Grok as well: http://code.google.com/p/semicomplete/wiki/Grok. It's a field extractor.

Definitely. Just about anything Jordan makes is probably worth checking out, actually.

Here's a post Jon did a few months ago on logs and Solr: http://www.loggly.com/2010/08/our-solr-system/ The deck from the SalesForce meetup is in the post as well. It's about the same as the one he did at Lucene Revolution a few weeks ago.