I spent about 45 minutes on this one, and could have just slapped myself silly at the end.  I was trying to re-create a database on my thinkpad from a vs.net database project.  When the dialog popped up asking where to run, I would tell it . (dot), and the database name.  It would get through the first few commands, and bail on the bcp. 

I never even thought to try something but dot.  I always use dot.  I like dot.  Dot is my friend.  But, bcp doesnt seem to like to address a local DB as dot.  Just a word of advice for anyone who may be using dot to specify local host, and can't figure out why the db project loads on their neighbors box, and not theirs. 

And for those of you that don't use a db project to manage their db and sprocs, get on it.  Very very cool feature of the IDE, especially when you factor scc in.