Pretty much the worst thing you could do to a SQL Server database. In short: It sacrifices performance to gain space.
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Shrinking the SYSTEM tablespace in Oracle
Our SYSTEM tablespace grew out of control because of the SYS.AUD$ table.
We have truncated SYS.AUD$ but the datafile is still very big (~30G).
Resize doesn't work because the file contains used data ...
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TempDB data files don't shrink well on SQL 2008
So ideally you want to pre-size your TempDB data and log files appropriately so that this isn't a concern, but sometimes a rogue developer runs a crazy huge query on a production server during work ...
