Anyways, if you need to get syslog-ng.conf configured for PSAD, this is what you need to do:
Add this code to the "# pipes" section, maybe stick to keeping it alphabetical.
destination psadpipe { pipe("/var/lib/psad/psadfifo"); };
Next, go down a little to the "# filters" section, add this:
filter f_kerninfo { facility(kern); };
And finally in the last section, add this:
log { source(s_all); filter(f_kerninfo); destination(psadpipe); };
Restart syslog-ng, and you are good to go. Cheers to Michael Rash at Cipherdyne for his work on PSAD.