I believe SQL Server 7.0 has a feature that will not update log file while index rebuild. Since SQL 2000 this feature disables and problem starts. I am working in large SQL server 2000 and 2005 environment and have three scenarios to describe this issue.
 Having near to 1000 SQL servers, it is difficult to rebuild selected indexes on tables. We generally rebuild all indexes on week-end maintenance job. Because of large size database, the log file grows in huge size and fills up the disk drives. The rebuild index job failed many times because of space issue on log file, tempdb etc. The rebuild index script need to change recovery model to simple before index rebuild starts and this opens a door for tragedy. Financial data can’t afford to loose transaction and this happen many times as after rebuild index, for some reason, the database stays in simple recovery model.
 In log shipping, the huge log files generated after index rebuild job create a big issue on WAN link. Many times the secondary server goes out of sync because of the large log files chocked up the WAN link. Here I can’t change the Primary database to simple recovery model.
 The issue happens with log shipping repeats with database mirroring.