After a server failure I discovered that Windows Sharepoint Services was creating gigabytes of log files where after our server died with a ‘no more disk space’ error.
WSS V3 out of the box has extensive logging activity, Logs can be usually found in this directory C:\Program Files\Common Files\Microsoft Shared\web server extensions\12\LOGS
If you are running WSS V3, you can disable logging activity by doing the following:
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Go to WSS V3 Central Administration -> Operations -> Logging and Reporting
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Click on Diagnostic Logging
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Customer Experience Improvement Program: select No, I don't wish to participate
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Error Reports: select Ignore errors and don't collect information.
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Trace log: clear the entire Path.
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Click OK
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Click on Usage Analysis Processing
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Uncheck Enable logging
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Click OK
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Click on Information Management Policy Usage Reports
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Uncheck Enable recurring policy usage reports
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Please remember that once you have disabled logging it will be impossible to troubleshoot any WSS errors.