Steve,

My problem is fixed: I really appreciate your help and Cetin's. Thank you Both.

The culprit is vfpoledb.

When i used the odbc driver on free tables it is working fine, with otu any problem i inserted more than 1000 records in less than 5 mins.
where as vfp oledb is taking more than 25 mins just for 256 records and at the end with an error saying "Too Many variables"

I used the following:
*******************
'The following is a straight forward odbc driver on free tables working extremely good
oconn.Open "Driver={Microsoft Visual FoxPro Driver};" & _
"SourceType=DBF;" & _
"SourceDB=" & Tblpath & ";" & _
"Exclusive=No;"

''the following is vfpoledb which is failing at every 256 records.(error: Too many variables)

oconn.CursorLocation = adUseClient
oconn.ConnectionString = "Provider=vfpoledb.1;Data Source=" & Trim(Tblpath) & ";Collating Sequence=machine"

oconn.Open
*********************

Thanks Again.
-Raj