Database And Log Maintenance

Running SQL Server 2000 Enterprise Edition SP3. The database is also
used by Microsoft Project Server 2002 and also has OLAP views, so the
database is being used to view/run cubes in the Analysis Manager.

What is the best way of shrinking the database size and its log file too?

Is there an automatic way to do this with a maintenance plan or i have
to manually run a SQL statement periodically?

What are the best practices?

I have a database that the size of it is 260megs and now the log file is
over 800megs...
Everytime i run the following:

BACKUP LOG DBName WITH TRUNCATE ONLY
DBCC SHRINKDATABASE (DBName, 10, TRUNCATEONLY)

When running it, i get the following 2 records returned:

DbId FieldId CurrentSize MinimumSize UsedPages EstimatedPages
7 1 32304 128 28152
28152
7 2 160 128 160
128

I don't know what the above 2 records mean. I am also concerned if i should
be running that statement or not.

Also concerned as to why the Windows Server 2003 (Enterprise Edition)
always creates a CRITICAL error in the Application event viewer with EventID
number 17055, source being MSSQLSERVER and the description of the event:

18278:
Database log truncated: Database: DBName.


If it's a critical error message, then what i am doing is bad? Am i damaging
my database?


Within like 7-10 days of running the above statement, the log file becomes
close
to 1 GB again! How can i find out what causes the log file to grow that big?
Is it being
caused by running some OLAP views or what? The db has about 20 users
connected to it
using an ASP web aplication as the front-end, and MSP Professional 2002 also
to connect
to the Project Server 2002 (which uses the same database as the above
DBName).


I would appreciate any help.

Thank you very much