SQL LOG FILE

My log file is 2,111 mb. I need to know if it is secure to delete it. I need suggestions to handle the file in a secure manner. Is there a general routine adopted by companies to deal with the size of the log? Can I shrink the file? Can I control the size? (SQL 2000).
Also I need help with Desktop engine. For SQL 7, I have installed it on my laptop with fewer problems. Now with SQL 2000, I can’t install it.
Please, Help!