>>>>I saw recently a thread on MSDN forum with the exact same message. I think it may be a bug in SQL Server 2005 which you hit. If you can not re-write the query, then I suggest to open a case with MS on this. You can also post this issue at MSDN forum. I suggest to post here
>>>>http://social.msdn.microsoft.com/Forums/en-US/transactsql/threads
>>>
>>>Where can I see if I am on SP3?
>>
>>Run the script http://berezniker.com/content/pages/sql/microsoft-sql-server/retrieving-sql-server-edition-version-and-service-pack-info
>
>
>Standard Edition 9.00.4053.00 SP3
>
>I had on other thought. How about concant the the query.
>I notice if I used ?ldStartDate it adds parameters to the EXEC statement
>but if I change it to '06/01/2010' it makes a select statement
>
>any thoughts on that one?

I'm not sure why the same SQL works without parameters and doesn't work with. Try deleting the SQL Server cache (I need to check the command later).

Run without parameters (with hardcoded values) to make sure it works without parameters. It still looks like a bug or something gone wrong.