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Users typically have no need to access log.nsf, so deleting the log should have no impact on users.
However, I wouldn't delete it with the server up - you should take it down first.
There's not really a straightforward way to compact log.nsf while the server is running, because it's locked, and the compact task itself writes to the log.
If you're strapped for space, the quickest way to recover the space is to shut down the server, delete (or rename) the log.nsf, and the server will recreate the log when it is restarted. However, unless you change some settings, you'll probably have a 3.7G log file again within a month or two (depending on your settings).
There are various server/debug settings that can be used write additional logging information, so that could cause the log size to grow faster. A few more common notes.ini settings (off the top of my head) that cause additional info to be written to the log are: