Any reason why im at 700MB and counting then?

How big is the blockchain (GB wise)?  Is a new block generated every time a transaction is made.

I transfered about 14 BTC to my receiving address (the address is correct).  The transactions are in block explorer and my client seems to be up to date (currently 8 connections and ~130k blocks).  The block count is increasing ever so slowly.  The receiving addresses are present in my clinet.  Where are my BTC?  Did I lose them?  I'm worried.