Hey I have this configuration in my web.config
is saying "write mylog.log to actual folder". This means that if your webapp is under IIS, then log will be written to C:\inetpub\wwwroot\appname\mylog.log.
If log file is not there, then maybe account under which is app running doesn't have write permission on folder. You can run Process Monitor from SysInternals to see if and where a file is written.
Also run VS in debug mode, to see if any exceptions are thrown (Debug->Exceptions->CLR Exceptions, check Thrown).