How to resolve Error: 3041, Severity: 16, State: 1 reported in SQL Server Log?

This error message is typically experienced while taking a differential backup in SQL Server 2005. This may be reported in Event Log too as below:

Entry#1

Date <Date>

Log <SQL Server (Archive #1 – Date/Time)>

Source Backup

Message

Error: 3041, Severity: 16, State: 1.

Entry#2

Date Date

Log <SQL Server (Archive #1 – Date/Time)>

Source Backup

Message

BACKUP failed to complete the command BACKUP LOG <DB Name>. Check the backup application log for detailed messages.

This problem may occur when the internal status flag for a full database backup does not reset after you create the full database backup. If a server experiences this issue, it must be applied with appropriate hotfix as per http://support.microsoft.com/kb/921106.

Please note that you should apply a hotfix only if it is necessary. Also this hotfix does not require a restart of SQL Service after installation. 

Note: This applies to SQL 2005 only.