When backup of Transaction Log is sent via TSM, it is sent incorrectly for its TSM Management Class to the tape pool. It should be sent as per the Management Class to the disk pool.
The LiteSpeed interface is calculating the Estimated Backup size based upon the Database size, not the Log File size.
WORKAROUND:
Specify the Estimated File size of a TSM backup with the following TSM parameter:
@tsmestimatedsize x <-- where x is the estimated backup file size in bytes.
e.g. EXEC master.dbo.xp_backup_database @database = N'Northwind', ..., @tsmestimatedsize x
The issue is currently in Development to alter the functionality to consider the Log File size, rather than the Database size, for a Transaction Log backup to TSM.
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