Does Ciscoworks only accept syslog messages with a facility of local7?
No. The Windows crmlog daemon will accept ANY syslog messages regardless of facility. they will all be logged into the same syslog.log file.
The Solaris syslogd can be configured to use any facility for Cisco syslog messages by modifying /etc/syslog.conf. However, if you change the destination log file, you will also need to run /opt/CSCOpx/bin/syslogConf.pl to update the other syslog components in LMS.