The tools that I tested and liked today:

logview : http://code.google.com/p/logview-web/   -->  I need to work on it a little more and make a more flexible.

JavaMelody : I liked it.

Now I have to build a central repo of all the logs. Looking into the minimum effort way and also that would be least resource intensive. Yes I am cheap.

Will be looking into octopussy soon.

Options that I am looking into for building my web based logviewer :
syslog-ng , flume , solr , activmq,jwebsockets,

I need a realtime, persistent aggregate log watcher that would support queries, fast search and text highlight.