Using this while playing Skyrim would probably best be done with Skyrim in windowed mode, and / or with a second monitor to display the log. You can also configure it to http://i.imgur.com/6eGYb.jpg when certain keywords are encountered. Just point it at your Papyrus.0.log file, and leave the window open while you play Skyrim. You should see it update and scroll to the bottom automatically.
Enjoy.
P.S. Another Tail utility for Windows, called http://tailforwin32.sourceforge.net/, did not work for me for Papyrus log files. Probably has something to do with the way Skyrim locks the log file during play. SnakeTail seems to work great.
