I went in and checked my Transaction log the other day and it was something crazy like 15GB. I ran the following code:
USE mydb
GO
BACKUP LOG mydb WITH TRUNCATE
Creating a transaction log backup doesn't mean that the online transaction log file size will be reduced. The file size remains the same. When a transaction is backuped up, in the online transaction log it's marked for overwriting. It;s not automatically removed, and no spaces is freed, therefore, the size remains the same.
Once you set the LDF file size, maintain its size by setting the right transaction log backup frequency.
Paul Randal provides details here:
Understanding Logging and Recovery in SQL Server
Understanding SQL Server Backups