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Incremental chains

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I've always used ATI for my system images but recently have started using it for scheduled data backups too. I'm wondering what happens if an inc file part way through a chain gets lost or damaged. Does the next inc effectively repair the chain, or are the contents of that inc just lost but the chain is otherwise OK, or is the whole chain effectivly rendered useless, or at least unreliable.

ATI 2010

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If an incremental gets damaged, only the prior backups have any restore capability. Any new or more current incremental backups has no recovery capability. The chain becomes broken with the bad incremental.

Thank you GroverH - the one outcome I deliberately left out but feared might be the answer. I'd better give some further though to how I want to use it.

You might find this link helpful.
http://forum.acronis.com/forum/6778#comment-27285

The free TrueImage Home helper program called Chain2Gen listed in my index can help you manage your backup frequency. Check it out.