Ok - got it to work with some adjustments to the menu_1024_768.ini file. It can display 3 lines, but I thought it looked better with only two lines (and it was easier to fit it into the available space without having to move the date and text box down if it was on just 2 lines) - see below:
It's a very simple set of tweaks - a couple to the menu_1024_768.ini file and one to the menu.txt file, as follows:
menu_1024_768.ini file:
[G35 I21]
Name=Captain'sLogTitle
Type=1029;Static text
ItemID=0x35060002
ParentID=0x35060000
Pos=60,-122,310,35
Zone= 613 624 510 135 3 1 0x35040000 0 0 0x35060002 0 1 -25 -27
Color=0x171717FE
Font=19
Text=2167
TextFlags=0x15
[G35 I50]
Name=Date
Type=1029;Static text
ItemID=0x35000002
ParentID=0x35000000
Pos=613,-182,310,32
Zone= 613 586 310 32 0 1 0x3500000F 0.5 -0.5 0x35000002 -0.5 4.4 0 70
Font=19
Text=0
TextFlags=0x5
NOTE - the numbers above work at 1024x768 resolution
if you are already using my enlarged Captain's Log tweaks - if not, you'll have to experiment some to find the right placement for your resolution and log position. The font number changes are to reduce the font size slightly to make this fit better.
menu.txt file:
2167=CAPTAIN'S LOG|USS Pantherfish (SS-55) - LtCdr Pops Panther
Of course, you can add your own boat name/number and skipper's name. The "|" (the capitalized version of the "\" key) is what signals the carriage return to put the text that follows on the next line.
Enjoy!