3GB sdedc_SQL Server.log

Hi

I have a 3GB sdedc_SQL Server.log file in my ArcGIS Server 10.1 host.
The SQL Server 2008 R2 is on another server.

The file is in the:
C:\Users\arcgis\AppData\Local\Temp folder.
And is being locked from deletion by ArcSOC.exe processes.

This user is not in use by anyone but the application.

Questions:

1. Can the file be deleted/ truncated? Do I have the same from the server perspective data in my DB log?
2. Is it normal to have a 3GB sdedc_SQL Server.log file?
3. How can it be moved to another drive?
4. Will AGS performance be affected if I move the folder to and allocated storage (rather than a local HD)?

TIA
HW