My system has been running for over a day now with my new setup as per my 
last post. ie NOT killing klogd, and all is working well.
From my reading /proc/kmsg is basically a special one time read 'file', so if syslog-ng is trying to read it, AND klogd is running you will get the garbled messages. I did have an issue when first testing where klogd got restarted at some point, so seeing as klogd consumes so little mem/cpu, it seems more stable to leave it running (than cron a watchdog type script to kill it) and just not source /proc/kmsg in syslog-ng.
I simply commented out the whole 
source kernel {} directive in syslog-ng.conf,
	
	
	
		Code:
	
	
		#source kernel {
    #file("/proc/kmsg" program_override("Kernel") flags(kernel) keep-timestamp(no));
#};
	 
  and
	
	
	
		Code:
	
	
		log {
    source(src);
    #source(kernel);
    destination(messages);
};
	 
 
then sent 
killall -HUP syslog-ng, and haven't missed a beat since.
Then I commented the 
source(kernel); line in the log section of each file under /opt/etc/syslog-ng.d/ also.
Should be pretty easy for scribe to make those changes seeing as it installs it's own small syslog-ng.conf file, or use sed on the larger file if selected during install.
Thanks 
@cmkelley for getting me started on a nice project!