First, check /var/log/messages (and any other files you have configured). It may have made a last-gasp effort and written something useful. (Don't get your hopes up too high, though.)
Try running (as root) /sbin/syslogd -d
That turns on debugging. It should give you some sort of error message. (See "man syslogd" for some other pertinent info.)
If that doesn't produce anything useful (such as: it runs flawlessly until you kill it) just run it as
Since there's nothing "eating" the sysout, you may have better luck seeing error messages that way.
Finally, the problem might not be with the syslogd daemon at all, it might be the script. Cd to /etc/rc.d/init.d and edit the syslogd script and add a " -x" after the "#!/bin/bash" at the top.
Hope this helps,