OOPS!
I had said, 'The job that runs the Full or Diff at 7 pm also runs an INIT on the "DbName.Bak" file' -- WRONG!
The Diff job does INIT on the "DbName_Log.Bak" file, not the "DbName.Bak" file. Otherwise I would lose the Full backup, and my Diffs would be worthless.
Mike Hinds Lead Database Administrator1st Source BankMCP, MCTS