ONce you have upgraded to latest release or even latest MR4
1. IIS logging is by default disabled.
However if you want to disable it manually
Open IIs manager ( start -run-inetmgr ) expand website -right click on the website on which you have SEPM installed -properties- home directory -Uncheck Log Visit.. you can aslo uncheck log visit for the sub folders in the website.
2.For controlling Inetpub\Content folder
Login to SEPM -Admin -Local Site -Properties -Liveupdate
Number of Content revisions to keep [ ]
Depending on your number of clients you can adjust this number that will keep your Content folder in size
for about 100 computers 3-5 should be fine.