the script /etc/init.d/syslog contains the line:
daemon /sbin/syslogd $([ -n "$MARK" ] && echo -m $MARK) \
$([ "NETWORK_LOGGING" = "yes" ] && echo -r)
which is missing a "$" before the NETWORK_LOGGING. This causes logging
from other hosts to fail.
Will be fixed one way or another in 1.4-5. Might be removed in
favor of the 'daemon options' thing.