Recently I did a fresh installation of SharePoint 2007 in a standalone system and applied all the service packs and cumulative updates released. After working in the server for 2-3 days I noticed the free space of the SharePoint installation drive going down at a very high rate. I lost over 5.5 GB of the free space in the disk over the past two days. I installed this handy tool to investigate the sizes of the folders residing in the drive. To my surprise, I found out the ’12 Hive’ occupying around 6 GB of the disk space. When I opened it to check the individual sizes of its sub folders I found that the whole space is taken by the LOGS folder. It contained around 3-4 files sizing over a GB. I stopped the WSS Tracing service in the services and deleted all the XL log files. But when I switched on logging it started growing again. I googled out the issue for a few minutes and found this useful post – http://blogs.vertigo.com/personal/steventap/Blog/archive/2007/01/19/managing-sharepoint-2007-moss-application-log-size.aspx dealing about this issue. The solution is just to configure the Diagnostic Logging in Central Administration -> Operations -> Diagnostic Logging. I just configured ‘Least Critical Event to report to the trace log’ to be medium, since I’m working in a dev environment. You can configure it according to your server’s nature such as production, staging etc.