I was getting the low disk space notification on my CRM 4 server . I realized that i had enabled Tracing for CRM 4. ( through CRM 4 Diagnosis Tool). I had enabled it some 4-5 months ago, while i was facing certain issue in CRM 4 installation.
I checked the size of the Trace folder, and i was surprised to see it’s size to be almost around 40 GB ! I think as suggested by Microsoft we need to carefully think before we enable tracing.
More on CRM 4 diagnosis tool http://blogs.msdn.com/benlec/archive/2008/03/04/crmdiagtool4-for-microsoft-crm-4-0-has-been-released.aspx