>>>When running sqlcmd I get log in failed with a reference to a msg and line. The only thing I have in Program Files under SQL Server 2005 is Configuration Tools. I am thinking about removing SQL and starting over.
>>
>>Before removing, are you sure you checked (and double checked) in there is an option to install Client Tools?
>
>Yes.

See this picture http://vsteamsystemcentral.com/images/ext/RC0Inst08.png

Your case should be very similar.