I don't have the faintest idea what is happening on your clients :(( Could you provide more details about your client hosts? For example what OS are you using, what version of syslogd is running and how does a sample log message look like?
[scarolan@client ~]$ rpm -q sysklogd sysklogd-1.4.1-40.el5 Sample from /var/log/mylogfile.log. email addresses, ip address and session id changed to protect the innocent. The "localhost.localdomain" entry is actually in the log entry though. I did not change this part. These get written to the local file but not the remote host. Mar 17 18:07:51 localhost.localdomain customername: info - com.foo.services.webui.PageTurnEvent: ActorString(somerandomdude@yahoo.com)ActorID(3969999)SessionID(hv1ukzasd32.JS1)HostID(70.XX.XX.XX) Page(joblist.html)