I was searching tonight for disk space on my SBS 2008 server as a routine thing I do to keep an eye on things. I found that the SharePoint_Config LDF file was over 10GB in size – ouch!
I ran the SBS 2008 Best Practice Analyser and it guided me to a Microsoft KB article which described the problem in full along with a way to resolve it. Check out this Microsoft KB article here as it worked fine to fix my problem.
After I ran the FixIT tool, it reduced it quite nicely. As you can see it’s down from 10.9GB to just over 1MB.