Your really need to read Books on line for the Database recovery mode. Depending on which mode you are using will depend on how your transaction log will function.
If the database is not a critical you can change the mode to Simple this will allow the log file to truncate itselfs on each Checkpoint, you will have to still do the shinkfile command to remove free space.
If after rading the modes you don't understand them post again and I help explain them.
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