Looks like some sort of connectivity issue...

a) Is SQL Browser enabled?

b) Are remote connections enabled (in SQL 2005 this is done via Surface Area Configuration Manager)

c) What happens when you excute the following at command prompt

Sqlcmd –S t2DBA03\report –E

Do you get a "1>" on the command prompt?

And I'd recommend you use the -d switch (as given in the example) to connect to the appropriate database that has the "tmp" table created in it