First you should consider, is the database you are inserting into a reporting/datawarehouse kind of non-transactional database? Can you imagine you can make a full backup of the database every time backuping is needed , so you won't need "daily" transaction logging backups ?
If you answer Yes, in case of sql2000, goto Database's properties, Options tab, and change Recovery model to Simple, not Full (in case of sql7 it's checkbox Truncate log on checkpoint).[When Recov.m is Simple, you make full db backups, and when recov.m is Full, you make "simple" backups]. In sql2k, in Transaction log tab, you can define auto-grow, won't go into details, possibly define maximun file size to something (2 Gigs?, of course you need the disk space).
After this you probably want to empty the transaction log. In Query Anayzer in master db context, execute command DUMP TRANSACTION yourdatabasename WITH NO_LOG. You also might want to shrink the logfile, but I won't go into that now.
Cheers