Tim, I had the same problem. I just removed all the offending whitespace and it works fine now:

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-- Create Table and Insert data

---------------------------------------------------------------------

if object_id('tempdb..TestTable')is not null drop table TestTable

Create Table TestTable (RowID Int Identity(1, 1), Col1 int, Col2 char(3))

Insert TestTable Values (1, 'ABC')

Insert TestTable Values (1, 'DEF')

Insert TestTable Values (1, 'GHI')

Insert TestTable Values (2, 'JKL')

Insert TestTable Values (2, 'MNO')

Insert TestTable Values (3, 'PQR')

Insert TestTable Values (3, 'STU')

select * from TestTable

---------------------------------------------------------------------

-- Add TestTable column and Insert Row Number

---------------------------------------------------------------------

Alter Table TestTable Add ColRowNo int

Update TestTable

Set ColRowNo = RowNo

From

(Select RowID

, Row_Number() Over (Partition By Col1 Order by RowID) RowNo

From TestTable

)as B Where TestTable.RowID = B.RowID

;

---------------------------------------------------------------------

-- Concatenate Col2 in comma seperated form Group by Col1

---------------------------------------------------------------------

With CTE (X, Y, Z) AS

(Select Col1, Convert(Varchar,Col2), ColRowNo From TestTable Where ColRowNo = 1

Union All

Select Col1, Convert(Varchar, Y + ',' + Convert(Varchar, Col2)) Y, ColRowNo

From TestTable

Inner Join CTE on Col1 = X and ColRowNo = Z + 1

)

Select X Col1, Y [Concatenated Col2] From CTE

Inner Join

(Select Col1, Max(ColRowNo) ColRowNo From TestTable Group by Col1

) TestTable on X = Col1 and Z = ColRowNo

Order by X

OPTION (MAXRECURSION 2);

Drop Table TestTable

GO