Application log file is full

These are record files. Do you have WINS running on that system?
The log are just to give information. Nothing deleted out of the log is going to hurt your system its pure informational. See if you need any information out of it or you can safe it to a file and clear the log.

You can delete the logs as its purely a information(event) logging.
I recomend you to do follwing things
Open the Event Viewer
go to LOG > LOG SETTINGS >
in the EVENT LOG WRAPPING select overwrite events as needed.
do this for all logs
i.e Application, Security, System
and keep the log size 512 K
This will never bother about the logfile full as it will overwrite the contents as needed.

I would recommend setting the logfile size larger then 512k, this is to small and you could overwrite important entries before you are able to view them. I would set all three log files to 2048. I would also begin a policy of saving the logs on a reqular basis. This will help you track changes and or obtain important information for furture needs.

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