Client Workstation Initiated Bulk Inserts Fail

I'm setting up a new 2005 server and bulk insert from a client workstation (using windows authentication) is failing with:

Msg 4861, Level 16, State 1, Line 1
Cannot bulk load because the file "\FILESERVERNAMEsharedfolderfilename.txt" could not be opened. Operating system error code 5(Access is denied.).


Here's my BULK INSERT statement (though I'm pretty sure there's nothing wrong with it):


BULK INSERT #FIRSTROW FROM '\FILESERVERNAMEsharedfolderfilename.txt'
WITH (
DATAFILETYPE = 'char',
ROWTERMINATOR = '
',
LASTROW = 1
)

If I run the same transact SQL when remote desktopped into the new server (under the same login as that used in the client workstation), it imports the file without errors.

If I use the sa client login from the client workstation (sql server authentication) the bulk insert succeeds.

My old SQL 2000 server lets me bulk insert the file without errors even from my client workstations using windows authentication.

I have followed the instructions on this site: http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=928173&SiteID=1
, but still no luck and same error.

I'm pretty sure it is being caused by the increased constraints on bulk insert in 2005. Hoping someone can help. The more specific the better. If you need more info, let me know.

Oh and I've also made sure that the SQL service uses a domain logon account rather than the local system account.

Note that the file server (source file resides there) is a DIFFERENT machine than the 2005 SQL server. If I move the source file to the sql server machine the error goes away (not a preferred solution though).

Thanks!