This was the kind of scenario I was thinking my be an issue with INITing it every day.

Thinking aloud...

We tape backup the server shortly after the 20:00hrs full backup job, so, if this were to happen and the full backup failed, it wouldn't run the differential WITH INIT step in the Job nor the Translog backup WITH INIT. In theory that would leave the differentials and translogs in tact (wouldn't it?) and I should be able to pull back the full backup from the previous night's tape and then apply the diffs and translogs.

Sanity check #2 please!