I looked into buying a hydraulic winch to go with my log hauling frame (see picture). The best solution I could find was from Mile Marker, they build winches that run off of the power steering pump for the recreational off-road vehicle market. One of our members here, 6sunset6, did get one of these working for logging, and found it worked well for him. Search to find that thread. If you go that route, check pressure and flow requirements/restrictions.
Like Grand-Dad said, by the time you buy all the bits and pieces a logging winch starts to look like a bargain.
Mine was bought by the original owner for firewood (Norse 290), he ended up not using it after all. It was still on the shipping pallet when I got it.
I may have given the impression I was going to sell when the current job is done. I'll probably have it for the next 25 years (I hope!), and sell it when I'm too old to use it anymore. By then I should be able to get back what I spent and maybe more, if it's looked after well. More of a long-term investment.
To me, it's a tool I need to do the job safely and efficiently, I'm getting too old at 46 to be crabbing around the woods with rolls of cable or chain. As much as I enjoy cutting firewood, I don't want to be bone tired and sore at the end of the day.
The rope is a viable option, the one I'd recommend is Amsteel Blue, or some variant of it. Warn uses it on some of their RTV winches now, but I've heard the abrasion resistance isn't that good. It's **** for strong, I've seen some pretty impressive lifts done using it at work. The problem I have with rope/cable/chain without a winch mechanism, is that if you make repeated pulls in one area you start to make ruts in soft ground.
Like Spyderlk mentioned, use a chain choker going to the hauling rope. Sharp rocks and grit don't bother chain much at all. I use Gr 70 1/4 inch chokers, although now with the winch I may want to upgrade to 5/16. Bigger is heavier, naturally..
Sean