Thanks for the reply Jack,
I am sorry i wasn't clear. Maybe I can help with this. I have the BAK from from Saturday which is the only one I will have. After that I will be getting TRN files every half hour to keep the file size small. The idea is to process all of the TRN files nightly so our site will be 24 hours behind. So the second scenario is correct except I will not be getting any more BAK files.
When I restore in stand by mode, and attempt to apply the first TRN log I get "The recovery path is different then what is in the log file". If I restore in recover mode I can apply the transactions but I can not read the database due to the status being in recovery. I tried to restore WITH RECOVERY, make a backup of that but that backup will not accept TRN files.
Should the database once restore in standby mode be in a certain recovery mode? Do I need to duplicate the suppliers drive mappings and/or setup? I am really at a loss.