1. Open up the Exchange System Manager
2. Navigate down to Servers - Server Name - Domain Name
3. Right click the Domain Name and click Properties
4. Click Browse and choose the location where you want to place the log files
5. Click Apply and it will do it for you
Strictly speaking it's safer to have the log files on a different drive so that the information store can be rebuilt in the event of a crash (not that Microsoft systems ever crash!)
Navigate to Servers, Servername, Properties, General and you can specify there that log files should be deleted after, say, 7 days.
If you want to read up about restoring an Information Store after a crash have a look at article q296788 in the MS Knowledge Base.
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