After doing some development/webpart work on our sharepoint server, the log file to grew to 3.5GB - we have 0.99MB of free space of a 20GB disk (this is a dev/test Virtual server).
Anyway after searching, i came across this blog: http://blogs.vertigo.com/personal/steventap/Blog/archive/2007/01/19/managing-sharepoint-2007-moss-application-log-size.aspx - thanks Steven!
Apparently you can manage how SharePoint logs it’s events:
The Problem:
SharePoint 2007 by default stores 48 [...]