MySQL Replication A->B->C

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http://serverfault.com – I was setting the MySQL Replication for master -> slave/master -> slave and Replication for master -> slave its works fine but when i have enable this option in my.cnf log-slave-updates=1 for updating the master bin log my replications is starting be slower and the time Seconds_Behind_Master is growing. I use innodb engine but the DB is big. Any idea how i can improve the replication, looks like the network is not the issue. Also i was think to use binlog_format=ROW but master is using default setting for replication 'statement' and i cant reset master ;) Thanks ... (HowTos)