>>You cannot turn transaction log off because it's used by SQL Server internally even in Simple mode. You can set 'Auto Shrink = True' in the DB options.
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>If I do this, would that have any impact on the backup? Because, this has been reported in another message.

No. Basically, with simple logging you are setting yourself up to rely solely on your database backup for recovery if your database fails. When you restore, you restore to the database that was backed up - you cannot recover any information that may have been in the database after backing up.

With full logging, theoretically you can recover up to the latest database state that had transactions committed to it because SQL can recreate transactions from the log. If you can't afford to lose time manually recreating data in the event of a crash then full is the way to go.

Auto shrink just means the database physically reclaims empty/deleted record space (knid of like PACK in fox).

Just make sure your database backups, whether done by SQL itself (recommended!!) or by a backup program, are reliable. Make sure you have a policy to check them regularly.