As the question says, what makes a great logo for your site? I think it would be great if you posted your banner and/or logo for your site to foster ideas for myself and others here. So let's see them!

Some i have made

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Philly Sports
Delaware Online
PA Forums

I'd say the logo is very important, it's how you determine your Brand.

btw. here are a few logo's that have been posted vBulletin Setup Forums - Gallery - Logo's and Banners

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I completely agree, I love your logos Caddy as usual. In fact lots of the logos Brandon linked are in the photo gallery. I'm trying to figure out if my logo should have the full text of my site name, or just the initials. Initials in the logo would be good because I could try to make them "status icons" but do most people prefer full text logos? Thanks in advance.

I am currenty re-doing my branding. I've hired a very creative guy and seen some great ideas. I hope to see mine in the above list soon too!

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vBPicGallery - The photo gallery for vBulletin forums.
Talk to bikers around the world about motorcycles.

If your site is new and unknown, best to incorporate the whole name into the logo. Think of it like this. If you never heard of pepsi and saw the logo you'd say "what is that?" Now since it's a household name and the logo is good you know what it is.

So until your known, best to keep the name in there. you can abbreviate for statusicons because they are already on your site on hopefully know the name enough to figure out the abbreviation.

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Philly Sports
Delaware Online
PA Forums

A few logos of mine:

Awesome banners and logos! Keep them coming. This is giving me good ideas for my own. I love the one with the orange car the most.

All your efforts look great to me but I particularly like this one. I'm looking to get a logo designed soon and this closely resembles what I want in style and layout.