Additional Info: I just noticed that the save date and time on the .mdf and .ldf are set at the time the database was last attached so that's probably a dead end. However, my question still remains for the forum. How should I tackle the slowness issue? it's really debilitating for data entry workers waiting on records to save and for scrolling to occur. We have only had this slowness problem for the last few months and it seems to be getting worse.

Increasing memory enables the tables to be stored in memory and thus increases speed. Also huge log files can cause speed problems. I have copied below suggestions that I have found via google for large log files.
Please note that this only seems to apply to SQL Server 2000. I have not seen this to be an issue for SQL Server 2005 Express or SQL Server 2005 Full version.
Please let me know if this helps!
Please note the instructions include both transaction commands and Enterprise Manager commands. You only need to do one. Most folks will do Enterprise Manager, but if you only have MSDE, then you will have to do the transaction commands.

Common cause of large transaction log file (.ldf)

Unfortunately the sql server default (except local editions) leaves the databases in full recovery mode.
This menas that if no action is taken no tr log entries will be freed and the log file will eventally fill the disk and crash the system.
The SQL Server installation process is very simple and commonly carried out by inexperienced personel. This will appear to work happily but cause problems later.
I would recommend always setting the model database to simple recovery mode to set the default for new databases.

Stopping the transaction log file (.ldf) from growing

If the log file has grown do to being in full recovery mode then set it to simple before going any further. This should immediately stop the log from growing.
Enterprise manager
Right click on the database, properties, Options, set model to simple, OK.
t-sql
sp_dboption [dbname], 'trunc. log on chkpt.', 'true'


Shrinking the transaction log file (.ldf)

Before this make sure there are free entries by setting the recovery model to simple or backing up the log.

Enterprise manager
Right click on the database, All tasks, Shrink database, Files, Select log file, OK.

t-sql
dbcc shrinkfile ([db_log_name])
Here [db_log_name] is the logical name of the log file as found from sp_helpdb or the table sysfiles


Shrinking the log file via detach/attach

Always take a full backup before a detach.

Detach the database, delete/rename the log file, attach the database - this will create a minimum size log file.
Note that the log file must be deleted/renamed otherwise it will be re-used even though it is not mentioned in the attach.

Enterprise manager
Right click on the database, All tasks, Detach database, OK.
Delete/rename the disk log file.
Right click on databases, All tasks, Attach database, Select the .mdf file, OK, Yes (to the create new log message).

t-sql
sp_detach_db [dbname]

Delete/rename the disk log file.
sp_attach_single_file_db [dbname], [filename]
where [filename] is the name of the physical data file (.mdf).