Database keeps growing in SQL Svr 2k8

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    I have a customized application which replicates data in to sql server 2008 r2. the database is created in sql server 2008 once you installed the customized third party application (i assumed by means of scripts). Recently i have noticed that the database itself keeps growing and when the replicator program is running it takes a long time to replicate all the data and data is also missing. Can anyone give me any hint of what might be wrong and how i can resolve that? How can i increase the performance of sql server?
    Any help is highly appreciated. Thanks

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