Hi,
You can create up to 16 named instances on SQL 2000 server, but only one default instance. I would recommend, if possible, run a new install and create two named instances. This way, you can set up log shipping on the production instance and simply copy any changes to the secondary, backup...
BACKUP LOG DbName WITH TRUNCATE_ONLY
GO
USE DbName
DBCC SHRINKFILE(DbName_log, size want to shrink it to). There are numerous examples on BOL in case you are still confused.
This should help you out. If you want you may set it up as a job on whichever database the log file seems to grow...
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