Primary requirement is that it can handle updates (Like UNIX shell tail -f ). Less important is filtering. Rather an editor (Notapad replacement) that has this functionality than a dedicated logviewer. (Probably not Emacs, though it could be nice with an example)
Why don't you look at cygwin -- it gives you a unix-like environment that you access thru a cmd shell and there you can run tail -f exactly as in unix/linux. It's open source/free.
I've used this for many years and love the power it gives me for development. Of course, you get all the unix goodies (grep, vi, sed, less...) and more with the package. You can select from a huge set of optional commands.
BTW, if you're running Vista, there are a couple of security issues that I ran into (I have one Vista machine for client support but otherwise avoid it like the plague) but there's good information about how to quickly get around that.
>Why don't you look at cygwin I am actually using it, but in a editor would be better - don't have enough real estate. I think I were calling tail.exe directly from the cmd-prompt.
By 'real estate', I presume you mean space on your screen?
I have the same issue so I just {Alt-Tab} from my editor to my cygwin/tail window to see what's happening and then {Alt-Tab} back to my editor. Quick and easy.