This one mostly works. Syslogd seems to die after reading the following line :
RAMDISK: squashfs filesystem found at block 0
<--- here --->
RAMDISK: Loading 6083 blocks [1 disk] into ram disk... done.


--- ./sysklogd/syslogd.c.klogd3	2006-03-13 16:23:08.000000000 +0100
+++ ./sysklogd/syslogd.c	2006-03-13 16:57:50.000000000 +0100
@@ -746,16 +746,49 @@
 				j = msgptr + remain;
 				msgend = j + i;
 				while (j < msgend) {
+					int tail, bs_count, newend;
+
 					if (tmpbuf[j] != '\n') {
 						j++;
 						continue;
 					}
 					/* we have one complete message between msgptr and j */
 					tmpbuf[j] = 0;
+
+
+					/* Remove intermediate backspaces that might have been
+					 * used by the kernel as a boot progress indicator.
+					 */
+					remain = tail = newend = j;
+					bs_count = -1;
+					while (--remain >= msgptr) {
+						if (tmpbuf[remain] == '\b') {
+							if (bs_count == -1) {
+								tail = remain + 1;
+								bs_count = 1;
+							} else
+								bs_count++;
+						} else if (bs_count >= 0) {
+							bs_count--;
+							/* we must keep the character at [remain] and
+							 * move [tail] to [remain+1].
+							 */
+							if (bs_count >= 0) { /* an excess of BS */
+								memmove(tmpbuf + msgptr, tmpbuf + tail, newend + 1 - tail);
+								newend -= tail - msgptr;
+							}
+						}
+					}
+
+					if (bs_count >= 0) { /* an excess of BS */
+						memmove(tmpbuf + msgptr, tmpbuf + tail, newend + 1 - tail);
+						newend -= tail - remain;
+					}
+
 					memcpy(tmpbuf + msgptr - save,
 					       "kernel: ", save); 
 					serveConnection(tmpbuf + msgptr - save,
-							j - msgptr + save);
+							newend - msgptr + save);
 					msgptr = ++j;
 				}
 				remain = msgend - msgptr;