Try Kiwi Syslog server. The free version is good, but doesn't come with the agent software. You can get round this by setting up SNMP trapping. Which leads to the question as to what it is your're monitoring, servers, network devices, both?
SNMP works well for network devices, not so great in my opinion on windows machines. An agent software like Snare (free) is pretty good and combined with Kiwi Syslog offers a pretty decent syslog system in all.
In terms of log analysis, not familiar with any decent freeware tools besides splunk. You could always learn a scripting language like Perl, which isn't too hard, tons of free tutorials out there, and great for log analysis.
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