run dbcc shrinkfile after restoring to reduce the size of the file.  Or you can run this prior to backing up.  Recommend shrinking in 500k or 1gig increments. 

This happens most often when you have the view of your database set to 'task pad'.  Change view to to detail, then back to task pad and you should be...

I never see the value of @servererror or @@error, because as mssql_rules stated the TSQL batch exits.  Hard to believe that the only option is for the script to just...