>1. Does the 2GB Size restriction apply to just the mdf file or the combined size of the mdf and ldf files?

Not sure. The only thing that I can find is the 2GB database limitation. I bet this includes the log.

>Can I turn the transaction logging off during the file import? Or, can I programatically truncate the log file periodically (from VB)?

You could set the Recovery Model to Simple.

-Mike