>I have a database where the log file is large, 130GB. I see some options that may help like Auto Shrink, but I not sure what they do. The current Recovery mode is Full, should this be simple. What would I be giving up if I go from Full recovery mode to simple?

If yours is a Development Databse then by all means change to Simple Recovery, that's the way it should be.
If it is a Production Database holding live data of an organisation then taking backups regularly should truncate the log file.

Also please see the Webcast on SQL Server it will clear all your doubts:
"MSDN Webcast A Primer to Proper SQL Server Development 1 of 10.wmv"
It can be downloaded from Microsoft's Website.