I've also been hacking on some kernel patches for the honeynet project. The patches impliment command logging to syslog or a file. You can get them here for anyone interested in them. I also worked on a terminal patch for the linux kernel that logs all terminal input and output to a file. But so far it doesnt look very feasable to do. It seems to log everything.... including term settings. So for now it's going on the back burner.
Well thats about it for now.
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If you're a C programmer with some spare time, take a look at the mod_virgule project page and help us with one of the tasks on the ToDo list!