SQL Server 2008 log files have minimum sizes, what gives and how do I make them smaller?
Detach the database.
sp_detach_db @dbname = 'EXAMPLE'

Physically delete the log file from disk (this is crucial, but can be risky - see mrdenny's comment below).

Attach the database using the sp_attach_single_file_db stored procedure.
sp_attach_single_file_db @dbname = 'EXAMPLE', @physname = N'J:\SQLServer2008\MSSQL.INSTANCE\EXAMPLE.mdf'