SQL Server 2008 recovery model

The database must be set up for simple recovery model..

  You can check this with:
SELECT name, recovery_model_desc
   FROM sys.databases
      WHERE name = 'xxxx' ;

If it is not simple then update with:

alter database xxxx set RECOVERY SIMPLE

To avoid the database transaction log from exploding during large inserts, batch the insert and checkpoint the db after each batch.