We are using log shipping for our main transaction db.  Conventional thinking-wise we should use and back up the main db for backup and recovery.  On the other hand, are there any issues if we use and back up the log shipped db as our main backup and recovery strategry.   Here are my two situations:

 1.  Say all hell broke lose, the only thing I can use to restore the database is that backup copy of the log shipped db.

2. I need to work on a copy of our transaction db on a test server.

Can a backup of a logshipped db archieve the above?

Wingman

You are almmost there. As Logshipping happens every few minutes, you may loose last few transactions.(Whatever happened after the last log shipment and before the failure.)
You take backup of log shipping database, you can restore it anywhere