It is possible to set the timestamp in the name of the file.
From http://download.oracle.com/docs/cd/E12839_01/apirefs.1111/e13952/taskhelp/logging/RotateLogFiles.html
To include a time and date stamp in
the file name when the log file is
rotated, in the File Name field, add
java.text.SimpleDateFormat variables
to the file name and surround each
variable with percentage (%)
characters.
For example, if you enter the
following value in the File Name
field:
myserver_%yyyy%%MM%%dd%%hh%%mm%.log,
the server's log file will be named:
myserver_yyyy_MM_dd_hh_mm.log.
When the server instance rotates the
log file, the rotated file name
contains the date stamp. For example,
if the server instance rotates its
local log file on 4 March, 2005 at
10:15 AM, the log file that contains
the old log messages will be named:
myserver_2005_03_04_10_15.log.
If you do not include a time and date
stamp, the rotated log files are
numbered in order of creation
filenamennnnn, where filename is the
name configured for the log file. For
example: myserver.log00007