The texture is as you say, a bit over done with the rust, but I think it's shaping up real good now.
I'd love to see the logo, with just the gear behind it, and no plate. Also could you try making the S at the end as large as the T at the start, so I could see how that would look. It might look like crap, but it could also make the logo a bit more dynamic in shape.
Right now the silhouette is asymmetrical like this: o----o-----
Try this: TorchModderS creating this silhouette: o----o----o
Or as an alternative this: torchModders creating this silhouette: ----o-----
This might not look good at all, I just want to see how it would look. It's easier to play with the silhouette with a word like "torchlight" where the first and last letter is the same. TorchlighT
Looks great. I like the one with gears and ghost effect best. It makes it pop. We should have both with and without the ghost effect though, in some situations it's nice to have a "clean" version of the logo.
I think they look great. Will you also send me version without the ghost effect, so we can see what works best for different places like the forum, wiki, front page, etc.