I also have a very large database with very sizeable clustered indexed tables. I've been looking for a way around the bloating of logs and keeping tranlog backups at a decent size. The only way I have found to do this efficiently is to spread the workload throughout the week instead of doing one-shot reindexing/reorg of the database on the weekend.
Also, one comment about Devine's post. Step #2 is fine, but remember that switching to bulk-logged recovery most often increases the size of the transaction log backups (although it does keep transaction log size smaller). This is because the pages that are modified during reindexing are marked in the transaction log, then when the tranlog backups occur .. then all of the pages marked are copied into the tranlog backup. Even when using 2008+ compression, redgate, or litespeed .. these log backups can very easily clog a WAN connection.