>To that end I have used the dsmfmt command to format a new
>log volume. I then issued a dsmserv extend log command. It returned with
>"ANR7804I A TSM server is already running from this directory."

The 'dsmserv extend log' is a RECOVERY thing: you are telling us that you
simply want to add a volume to your Recovery Log space so as to avoid
getting into a recovery situation.  For that you do 'DEFine LOGVolume'.
The *SM Admin Guide manual is the place for guidance in this area.
      Richard Sims, BU