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Easy things first - the docstring has been corrected in a later 
release.

I believe that when an exception occurs during logging, one 
of two things should happen: if raiseExceptions is 0, then the 
exception should be swallowed silently (typically, for 
production environments). This is because logging-related 
errors should not be treated in the same way as application 
errors (it's a pseudo-philosophical point, and not everyone will 
agree). If raiseExceptions is 1 (development environments), 
the exception should be raised.

I think the solution given by David London (groodude) may be 
fine for specific applications, but not sufficiently general to 
be adopted as is. I will check in changes to CVS which will 
call handleError() when an exception occurs during emit(). It's 
best to derive from RotatingFileHandler and put any specific 
handling you want into an overridden handleError().