Please read through this - Managing Transaction Logs[/url]
No, you do not need to shrink the log file, it's counter-productive. If the log needs to be that size it will just grow again and you'll have wasted the time taken to shrink and regrow.
The log file will reuse inactive portions, that's how it's designed. Only if there are no inactive portions will it grow.
If the log continues to grow, please read through this: http://www.sqlservercentral.com/articles/Transaction+Log/72488/
Gail Shaw
Microsoft Certified Master: SQL Server, MVP, M.Sc (Comp Sci)
SQL In The Wild: Discussions on DB performance with occasional diversions into recoverability