In SQL 2005 we used the following code to shrink a ldf file. In 2008 sql, do you use the same command or is there another command for 2008 that shrinks the ldf file?
Switch your recovery model on the database to SIMPLE, then do a full database backup. Then, run the following:
backup log yourdbname with truncate_only
dbcc shrinkfile ('logfilename', 0)
where logfilename is the name field returned from select * from sys.database_files
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