Use the DBCC ShrinkFile ({logicalLogName}, TRUNCATEONLY)
command. If this is a test database and you are trying to save/reclaim space, this will help.
Remember though that TX logs do have a sort of minimum/steady state size that they will grow up to. Depending upon your recovery model you may not be able to shrink the log - if in FULL and you aren't issuing TX log backups the log can't be shrunk - it will grow forever. If you don't need TX log backups, switch your recovery model to Simple.
And remember, never ever under any circumstances delete the log (LDF) file! You will pretty much have instant database corruption. Cooked! Done! Lost data! If left "unrepaired" the main MDF file could become corrupt permanently.
Never ever delete the transaction log - you will lose data! Part of your data is in the TX Log (regardless of recovery model)... if you detach and "rename" the TX log file that effectively deletes part of your database.
For those that have deleted the TX Log you may want to run a few checkdb commands and fix the corruption before you lose more data.
Check out Paul Randal's blog posts on this very topic, bad advice.
Also in general do not use shrinkfile on the MDF files as it can severely fragment your data. Check out his Bad Advice section for more info ("Why you should not shrink your data files")
Check out Paul's website - he covers these very questions. Last month he walked through many of these issues in his Myth A Day series.