ttiller,
I'm using the forwarder for multiple servers as well with no problems. Running in both 2003 and 2008 (32 and 64 bit). The only reason I can see (setup wise) that it would not forward event logs under those conditions and would generate a test but not forward... is if the syslog server is not created in the syslog server tab of the logforwarder.
Make sure your test that you are creating matches the subscription you setup to send logs because if the test doesn't match the subscription you won't get the test message.
And last, but not least... Make sure that you did not accidentally uncheck either the subscription or the syslog server on their respective tabs.