TMS will rebuild the target XML. If an error is made in the file type or during translation a 'strange' character is introduced, the XML file that is generated might not be valid and can normally not be used by the client. I think it would be a good enhancement if TMS could do a check if the output is valid.
So basically very similar to opening/checking the file in a web browser or in a Text editor like Notepad++.
If the output is invalid it should be sent to Recovery and not to Translated Content Retrieval.