I reinstalled the OSX, that turned out to be a challenge, ended up going to the Apple Store, drive reformatted and new OSX installed. But it looks like it was worth it as now Time Machine seems to be functioning properly. I also updated the firmware on the drive, it turned out to be simpler than I expected as it has a built in webserver to manage the drive. Here is my log for the last set of backups. Thanks for your help and your website.
2/25/13 6:27:20.018 AM com.apple.backupd: Copied 101.2 GB of 121.3 GB, 706953 of 773688 items
2/25/13 6:37:10.515 AM com.apple.backupd: Copied 737930 files (107.0 GB) from volume Macintosh HD.
2/25/13 6:37:21.775 AM com.apple.backupd: 853.7 MB required (including padding), 1.52 TB available
2/25/13 6:38:04.290 AM com.apple.backupd: Copied 8005 files (12.6 MB) from volume Macintosh HD.
2/25/13 6:38:15.497 AM com.apple.backupd: Starting post-backup thinning
2/25/13 6:38:15.497 AM com.apple.backupd: No post-back up thinning needed: no expired backups exist
2/25/13 6:38:16.479 AM com.apple.backupd: Backup completed successfully.
2/25/13 6:38:24.737 AM com.apple.backupd: Ejected Time Machine disk image.
2/25/13 6:38:25.050 AM com.apple.backupd: Ejected Time Machine network volume.
2/25/13 7:26:35.405 AM com.apple.backupd: Starting standard backup
2/25/13 7:26:35.613 AM com.apple.backupd: Attempting to mount network destination URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/25/13 7:26:35.953 AM com.apple.backupd: Mounted network destination at mountpoint: /Volumes/TimeMachine using URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/25/13 7:26:55.038 AM com.apple.backupd: QUICKCHECK ONLY; FILESYSTEM CLEAN
2/25/13 7:26:57.484 AM com.apple.backupd: Disk image /Volumes/TimeMachine/MunMacBook.sparsebundle mounted at: /Volumes/Time Machine Backups
2/25/13 7:26:57.497 AM com.apple.backupd: Backing up to: /Volumes/Time Machine Backups/Backups.backupdb
2/25/13 7:27:23.943 AM com.apple.backupd: 850.9 MB required (including padding), 1.52 TB available
2/25/13 7:27:23.944 AM com.apple.backupd: Waiting for index to be ready (100)
2/25/13 7:28:24.404 AM com.apple.backupd: Waiting for index to be ready (100)
2/25/13 7:29:29.422 AM com.apple.backupd: Copied 5055 files (13.1 MB) from volume Macintosh HD.
2/25/13 7:29:29.790 AM com.apple.backupd: 485.1 MB required (including padding), 1.52 TB available
2/25/13 7:29:43.281 AM com.apple.backupd: Copied 1178 files (148 KB) from volume Macintosh HD.
2/25/13 7:29:45.881 AM com.apple.backupd: Starting post-backup thinning
2/25/13 7:29:45.881 AM com.apple.backupd: No post-back up thinning needed: no expired backups exist
2/25/13 7:29:45.967 AM com.apple.backupd: Backup completed successfully.
2/25/13 7:29:53.605 AM com.apple.backupd: Ejected Time Machine disk image.
2/25/13 7:29:54.050 AM com.apple.backupd: Ejected Time Machine network volume.
2/25/13 8:26:54.959 PM com.apple.backupd: Starting standard backup
2/25/13 8:26:55.916 PM com.apple.backupd: Attempting to mount network destination URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/25/13 8:26:56.174 PM com.apple.backupd: Mounted network destination at mountpoint: /Volumes/TimeMachine using URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/25/13 8:27:16.485 PM com.apple.backupd: QUICKCHECK ONLY; FILESYSTEM CLEAN
2/25/13 8:27:19.104 PM com.apple.backupd: Disk image /Volumes/TimeMachine/MunMacBook.sparsebundle mounted at: /Volumes/Time Machine Backups
2/25/13 8:27:19.176 PM com.apple.backupd: Backing up to: /Volumes/Time Machine Backups/Backups.backupdb
2/25/13 8:27:45.018 PM com.apple.backupd: 541.5 MB required (including padding), 1.52 TB available
2/25/13 8:29:00.713 PM com.apple.backupd: Copied 15996 files (48.3 MB) from volume Macintosh HD.
2/25/13 8:29:02.493 PM com.apple.backupd: 490.1 MB required (including padding), 1.52 TB available
2/25/13 8:29:20.535 PM com.apple.backupd: Copied 4721 files (920 KB) from volume Macintosh HD.
2/25/13 8:29:27.372 PM com.apple.backupd: Starting post-backup thinning
2/25/13 8:29:27.372 PM com.apple.backupd: No post-back up thinning needed: no expired backups exist
2/25/13 8:29:27.396 PM com.apple.backupd: Backup completed successfully.
2/25/13 8:29:34.695 PM com.apple.backupd: Ejected Time Machine disk image.
2/25/13 8:29:34.989 PM com.apple.backupd: Ejected Time Machine network volume.
2/25/13 9:09:10.686 PM com.apple.backupd: Starting standard backup
2/25/13 9:09:10.963 PM com.apple.backupd: Attempting to mount network destination URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/25/13 9:09:11.201 PM com.apple.backupd: Mounted network destination at mountpoint: /Volumes/TimeMachine using URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/25/13 9:09:30.188 PM com.apple.backupd: QUICKCHECK ONLY; FILESYSTEM CLEAN
2/25/13 9:09:32.628 PM com.apple.backupd: Disk image /Volumes/TimeMachine/MunMacBook.sparsebundle mounted at: /Volumes/Time Machine Backups
2/25/13 9:09:32.649 PM com.apple.backupd: Backing up to: /Volumes/Time Machine Backups/Backups.backupdb
2/25/13 9:09:47.305 PM com.apple.backupd: 505.4 MB required (including padding), 1.52 TB available
2/25/13 9:10:12.555 PM com.apple.backupd: Copied 5198 files (13.6 MB) from volume Macintosh HD.
2/25/13 9:10:12.920 PM com.apple.backupd: 489.2 MB required (including padding), 1.52 TB available
2/25/13 9:10:22.286 PM com.apple.backupd: Copied 1014 files (120 KB) from volume Macintosh HD.
2/25/13 9:10:24.859 PM com.apple.backupd: Starting post-backup thinning
2/25/13 9:10:24.859 PM com.apple.backupd: No post-back up thinning needed: no expired backups exist
2/25/13 9:10:25.021 PM com.apple.backupd: Backup completed successfully.
2/25/13 9:10:31.924 PM com.apple.backupd: Ejected Time Machine disk image.
2/25/13 9:10:32.198 PM com.apple.backupd: Ejected Time Machine network volume.
2/25/13 10:02:52.164 PM com.apple.backupd: Starting standard backup
2/25/13 10:02:52.208 PM com.apple.backupd: Attempting to mount network destination URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/25/13 10:02:52.391 PM com.apple.backupd: Mounted network destination at mountpoint: /Volumes/TimeMachine using URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/25/13 10:03:11.398 PM com.apple.backupd: QUICKCHECK ONLY; FILESYSTEM CLEAN
2/25/13 10:03:13.779 PM com.apple.backupd: Disk image /Volumes/TimeMachine/MunMacBook.sparsebundle mounted at: /Volumes/Time Machine Backups
2/25/13 10:03:13.794 PM com.apple.backupd: Backing up to: /Volumes/Time Machine Backups/Backups.backupdb
2/25/13 10:03:26.318 PM com.apple.backupd: 505.5 MB required (including padding), 1.52 TB available
2/25/13 10:04:28.607 PM com.apple.backupd: Copied 5457 files (13.6 MB) from volume Macintosh HD.
2/25/13 10:04:29.234 PM com.apple.backupd: 489.5 MB required (including padding), 1.56 TB available
2/25/13 10:05:08.617 PM com.apple.backupd: Copied 1018 files (351 KB) from volume Macintosh HD.
2/25/13 10:05:17.870 PM com.apple.backupd: Starting post-backup thinning
2/25/13 10:05:17.870 PM com.apple.backupd: No post-back up thinning needed: no expired backups exist
2/25/13 10:05:19.649 PM com.apple.backupd: Backup completed successfully.
2/25/13 10:05:41.365 PM com.apple.backupd: Ejected Time Machine disk image.
2/25/13 10:05:41.699 PM com.apple.backupd: Ejected Time Machine network volume.
2/25/13 10:08:40.661 PM com.apple.backupd-auto: Not starting scheduled Time Machine backup - less than 10 minutes since last backup completed.
2/26/13 1:32:53.816 AM com.apple.backupd: Starting standard backup
2/26/13 1:32:54.380 AM com.apple.backupd: Attempting to mount network destination URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/26/13 1:32:55.445 AM com.apple.backupd: Mounted network destination at mountpoint: /Volumes/TimeMachine using URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/26/13 2:26:52.404 AM com.apple.backupd: QUICKCHECK ONLY; FILESYSTEM CLEAN
2/26/13 2:26:54.810 AM com.apple.backupd: Disk image /Volumes/TimeMachine/MunMacBook.sparsebundle mounted at: /Volumes/Time Machine Backups
2/26/13 2:26:54.821 AM com.apple.backupd: Backing up to: /Volumes/Time Machine Backups/Backups.backupdb
2/26/13 3:21:08.565 AM com.apple.backupd: 23.14 GB required (including padding), 1.65 TB available
2/26/13 3:27:51.372 AM com.apple.backupd: Copied 25 KB of 18.9 GB, 588 of 825 items
2/26/13 3:51:47.002 AM com.apple.backupd: Copied 9787 files (18.9 GB) from volume Macintosh HD.
2/26/13 3:51:50.395 AM com.apple.backupd: 495.9 MB required (including padding), 1.62 TB available
2/26/13 3:52:19.252 AM com.apple.backupd: Copied 2169 files (4.3 MB) from volume Macintosh HD.
2/26/13 3:52:26.102 AM com.apple.backupd: Starting post-backup thinning
2/26/13 3:52:26.102 AM com.apple.backupd: No post-back up thinning needed: no expired backups exist
2/26/13 3:52:26.149 AM com.apple.backupd: Backup completed successfully.
2/26/13 3:52:34.888 AM com.apple.backupd: Ejected Time Machine disk image.
2/26/13 3:52:35.363 AM com.apple.backupd: Ejected Time Machine network volume.
2/26/13 4:04:55.699 AM com.apple.backupd: Starting standard backup
2/26/13 4:04:55.909 AM com.apple.backupd: Attempting to mount network destination URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/26/13 4:04:56.305 AM com.apple.backupd: Mounted network destination at mountpoint: /Volumes/TimeMachine using URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/26/13 4:05:16.280 AM com.apple.backupd: QUICKCHECK ONLY; FILESYSTEM CLEAN
2/26/13 4:05:18.947 AM com.apple.backupd: Disk image /Volumes/TimeMachine/MunMacBook.sparsebundle mounted at: /Volumes/Time Machine Backups
2/26/13 4:05:18.957 AM com.apple.backupd: Backing up to: /Volumes/Time Machine Backups/Backups.backupdb
2/26/13 4:05:32.288 AM com.apple.backupd: 493.5 MB required (including padding), 1.61 TB available
2/26/13 4:05:57.815 AM com.apple.backupd: Copied 1879 files (1.9 MB) from volume Macintosh HD.
2/26/13 4:05:58.180 AM com.apple.backupd: 492.1 MB required (including padding), 1.61 TB available
2/26/13 4:06:15.527 AM com.apple.backupd: Copied 994 files (758 KB) from volume Macintosh HD.
2/26/13 4:06:17.171 AM com.apple.backupd: Starting post-backup thinning
2/26/13 4:06:17.171 AM com.apple.backupd: No post-back up thinning needed: no expired backups exist
2/26/13 4:06:17.195 AM com.apple.backupd: Backup completed successfully.
2/26/13 4:06:27.303 AM com.apple.backupd: Ejected Time Machine disk image.
2/26/13 4:06:27.616 AM com.apple.backupd: Ejected Time Machine network volume.
2/26/13 6:35:21.150 AM com.apple.backupd: Starting standard backup
2/26/13 6:35:22.012 AM com.apple.backupd: Attempting to mount network destination URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/26/13 6:35:22.510 AM com.apple.backupd: Mounted network destination at mountpoint: /Volumes/TimeMachine using URL: afp://;AUTH=No%20User%20Authent@MyBookLive.local/TimeMachine
2/26/13 6:35:43.045 AM com.apple.backupd: QUICKCHECK ONLY; FILESYSTEM CLEAN
2/26/13 6:35:45.510 AM com.apple.backupd: Disk image /Volumes/TimeMachine/MunMacBook.sparsebundle mounted at: /Volumes/Time Machine Backups
2/26/13 6:35:45.524 AM com.apple.backupd: Backing up to: /Volumes/Time Machine Backups/Backups.backupdb
2/26/13 6:36:03.089 AM com.apple.backupd: 509.0 MB required (including padding), 1.58 TB available
2/26/13 6:36:37.744 AM com.apple.backupd: Copied 5086 files (14.9 MB) from volume Macintosh HD.
2/26/13 6:36:38.233 AM com.apple.backupd: 491.2 MB required (including padding), 1.58 TB available
2/26/13 6:36:50.823 AM com.apple.backupd: Copied 964 files (93 bytes) from volume Macintosh HD.
2/26/13 6:36:52.103 AM com.apple.backupd: Starting post-backup thinning
2/26/13 6:36:52.104 AM com.apple.backupd: No post-back up thinning needed: no expired backups exist
2/26/13 6:36:52.134 AM com.apple.backupd: Backup completed successfully.
2/26/13 6:37:00.488 AM com.apple.backupd: Ejected Time Machine disk image.
2/26/13 6:37:00.797 AM com.apple.backupd: Ejected Time Machine network volume.