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Problem with Log event size

I came a across a problem with one of my clients with a win 2003 server that contains custom event logs from applications. The event logs are set to "overwrite logs as needed" and also set to a maximum log size of 1GB.
Yet still, it never gets past 360 MB (recycles itself).
The drive has plenty of disk space and I couldn't find anything on the web regarding this problem. If anyone has come across this I'd appreciate a mention on the comments of this post or through the contact link on my blog.

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