Template.Log is the trace file-- I hope it isn't running in production! Are you running Screensurfer in diagnostic mode? This makes tracing the default. You also request compile-with-trace from the DevCenter Admin menu.
Check-out the Admin DevCenter settings, and make sure that compile-for-trace is not the default.
Note also, that starting with build 2.0.5K (or so) we changed "roll-over trace files" from defaulted ON to defaulted OFF. This is the option that will copy your templates.log file to a timestamped BAK file in the same directory--you can delete all those BAK files, by the way.
Note also that compile for trace will run WAY SLOWER than normal compiles...