My plan was to get the text file and do a Bulk insert into a holder table in Sql server 2000 via the bulk insert command inside a stored procedure.

SQL Bulk Insert has been tuned over the years to work well with the Microsoft .NET Framework. This tutorial shows you how to take advantage of its power.

Arthur Fuller explores the value of identity columns and the usefulness of their arbitrary values and discusses ways to use SQL Server 2000's IDENTITY_INSERT setting.