Thanks Ed! I have something to add though...
What you said is exactly what I did (plus the writing to file bit), and while I later noticed that it works just fine in Windows, nothing would seem to happen in Linux. This was at the office.
Now, at home, I launch XSI from a terminal window (instead of from a menu like at the office), and alas I discovered that the renderer output is printed right out to the terminal instead of the XSI scripting log. While this is in my opinion a better choice, it means that XSI has to be launched from (or in) a terminal to get the progress in Linux.
Do you think this is a bug, or a conscious choice from Softimage?