Charlie I only see two things.
i think the call to the procedure has to be fully qualified, i always put the servername.schemaname, but that might not be an issue.
the other thing i see that doesn't match my examples, is where i expect the -r or -t row and field terminators to be in double
quotes...yours doesn't look like it did (i know the forum strips slahs-n unless you htmlize it)...but i'd expect the dbl quotes.
i just tested the example below, and it works fine.
DECLARE @sql varchar(2000),
SET @sql = 'EXEC Sandbox.dbo.sp_find ''act'' '
set @filename = 'c:\data\myfile.xml '
--put it all together
--flags -w wide format
--t custom field terminator
--r custom row terminator
SET @sql = 'bcp "' + @sql + '" queryout "' + @filename + '" -w -t"|" -r"\n" -Ulowell -PNotTheRealPassword -SDEV223'
EXEC Master..xp_CmdShell @SQL
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