Issue detected on esxihost in datacenter: Warning: Syslog not configured. Please check Syslog options under Configuration.Software.Advanced Settings in vSphere client.
I thought it was odd since the host previously never complained about the Syslog before. I compared the settings between it and the other 4.1u2 hosts that I had, and indeed, it was missing the Syslog.Local.DatastorePath setting.
The setting on my hosts was:
Once I copied this into my Syslog.Local.DatastorePath setting on the server, it was happy. I went ahead and copied the setting to my remaining 4.1u1 servers so that they will be happy when updated as well.
So apparently ESXi 4.1u2 has issues with the Syslog running on ramdisk, but ESXi 4.1u1 doesn't.
I found the following VMware KB Article that explains why it complains about it:
Syslog not configured messages on ESXi host console or in logs