DotNetCoders has a starter article on it: http://www.dotnetcoders.com/web/Articles/ShowArticle.aspx?article=50. They talk about how to set up the switches in the configuration file and how to write the code, but it is pretty old (2002).
There's another article on CodeProject: A Treatise on Using Debug and Trace classes, including Exception Handling, but it's the same age.
CodeGuru has another article on custom TraceListeners: Implementing a Custom TraceListener