Any way to make logs more useful?

[eluser]Daniel H[/eluser]
Does anyone use their log files effectively?

I find (occasionally) downloading the (sometimes!) huge text files and then trawling through them by hand really time consuming. I'd love there to be some sort of application that can parse the log files into something more useful (e.g. grouping common errors), or maybe somehow turn them into an RSS feed.

Any suggestions?