We are using Navision 2009 and the database transaction log file has grown to 121GB. We would like to shrink the file. Can this be done?
Do a full backup with truncate logs. You should be backing up the database on a regular basis.
Contact your MS Partner and they'll know how to fix it too. If you don't have an assigned MS Partner, you should find one in your area. (Full Disclosure: I work for a MS Dynamics Partner).