mtee is a small utility which works very well for this purpose. It's free, source is open, and it Just Works.
You can find it at http://www.commandline.co.uk.
Used in a batch file to display output AND create a log file simultaneously, the syntax looks like this:
someprocess | mtee /+ mylogfile.txt
Where /+ means to append output.
This assumes that you have copied mtee into a folder which is in the PATH, of course.