I think I have found the solution, which I will paste again here:
I think I have found the solution to this enigma. I had been fighting for many hours with my Mac to get this fixed, I noticed that weirdly enough, my log file was in the hundreds of megs while all the previous ones (the archived ones in .1, .2, etc.) where in the dozens of kB.
Second issue, the permissions on the file were wrong.
So you get to fix it by either:
fixing the permission (manually)
fixing the permission (from Disk Utility)
deleting the file with a "sudo rm"
I hope this helps, and apologies for not taking the time to document this fix precisely.
http://discussions.apple.com/thread.jspa?messageID=7985720#7985720