Problems Creating Error File When Using Bulk Insert Or BCP From Xp_cmdshell.

BCP thru xp_cmdshell from stored procedure:

EXEC sp_configure 'show advanced options', 1;

RECONFIGURE

EXEC sp_configure 'xp_cmdshell', 1;

RECONFIGURE

EXEC xp_cmdshell 'bcp database.dbo.table in c:scheduled.csv -S SERVERSQLEXPRESS -T -t, -r
-c -e "error.txt"';

This is returning the following error code.  I even tried placing the command in a seperate command file and calling that with no success.  If I run this from the command line the error file generation does work.

=================================================================

SQLState = HY000, NativeError = 0

Error = [Microsoft][SQL Native Client]Unable to open BCP error-file

=================================================================

Error message when using BULK INSERT as follows:

BULK INSERT database.dbo.table from 'c:unscheduled.csv' with

(FIELDTERMINATOR = ',', ERRORFILE = 'c:error.txt');

Returns the following error message:

=================================================================

Msg 4861, Level 16, State 1, Procedure pro_cedure, Line 9

Cannot bulk load because the file "c:error.txt" could not be opened. Operating system error code 80(The file exists.).

Msg 4861, Level 16, State 1, Procedure pro_cedure, Line 9

Cannot bulk load because the file "c:error.txt.Error.Txt" could not be opened. Operating system error code 80(The file exists.).

=================================================================

 

The Bulk Insert actually creates a empty error.txt file (0kb) and never preforms the insert, I can not find any examples of anyone using the -ERRORFILE switch on BULK INSERT.  Prolly some default security setting to allow file creation/modification I am missing.  Anyone help me out?  Thanks.  

EDIT:  SQL SERVER EXPRESS 2005 - WINXP PRO SP2