Yes, I have had similar problems with tail -f into an awk script, it seems to be buffering either the output from tail or the input to awk.
I had to replace my awk script with a perl script, and used the code described in the open section on the perlfunc man page to make STDOUT unbuffered.
I don't know why making STDOUT unbuffered fixed the problem (I would have thought it should be STDIN), but it did.
Annihilannic.