Hi GNUser
Sorry, I was getting ready to head out when I caught your question.
 ... So I guess I need to remove the  syslog  boot code and start syslog with a boot job instead ... 
Or you might be able to modify your boot code.
Looking through  tc-config  turns up the following:
				rsyslog=* ) RSYSLOG=${i#*=}; SYSLOG=1 ;;This sets  $RSYSLOG  equal to the string to the right of the  =  sign and sets  $SYSLOG  equal to 1.
				syslog) SYSLOG=1 ;;This is the  syslog  boot code. It just sets  $SYSLOG  equal to 1.
And finally, the section that handles the  syslog  request:
if [ -n "$SYSLOG" ]; then
	 [ -z "$RSYSLOG" ] || SOPTS=" -R $RSYSLOG -L "
	 /sbin/syslogd ${SOPTS} && echo "${GREEN}syslog started.${NORMAL}"
	 /sbin/klogd && echo "${GREEN}klog started."The  rsyslog  boot code is there to allow sending log messages to  IP_Address
:Port.   When it's not used,  $RSYSLOG  is an empty
string and  $SOPTS  evaluates to  "-R -L".  Without an address  -R  does nothing and  -L  tells it to log locally anyway. You should be
able to use this same mechanism to pass other options to  syslogd.  Try replacing the  syslog  boot code with:
rsyslog="-s 1000for a log file size of 1000KB.