There's a hugh difference between space management on 6.5 and 7.0. Have your client use sp_spaceused on the database. This will tell you how much is actually used and how much is reserved. Then have them run sp_spaceused on the syslogs table (which is actually the transaction log).

If you do have close to a Gig allocated, use DBCC SHRINKDB to release some of it back to the OS.

-Mike