Jonathon - I'm interested in your comment reorganising data and index pages.  I'm seeing a similar problem with out logs and data - with the logs twice the size as the data.  We're changing the backup logs to an intraday process so that should help.  However, let me give you my example:-

I update one table with 500,000 rows daily.  This table has 8+ indexes on it (about 100 fields).  Would the number of indexes contribute to the volume of the transaction log we're seeing?  We're reviewing the indexes but this is an incremental process as the product is large. 

Any help would be great.

Thanks,

Steve