Don't use the insert command as you currently have it. Contrary to popular belief, having the database in the SIMPLE recovery mode does NOT prevent the log file from being used. Since you're trying to transfer all 250GB in a single query, your log file will explode to at least that size.
You could write a WHILE loop to transfer the data in smaller chunks but it'll still take a while and fill the pipe while you're doing it.
It's time for a "carrier-pidgeon" to do the first load. Before we get into that, are both servers on a SAN and are both SANs of the same make and model?
--Jeff Moden
Change is inevitable... Change for the better is not.