Unable to execute SQL file passed into SQLCMD from Tools

I am able to successfully pass a SQL file from say ConText editor using its “Tools” facilities, not so from EmEditor.
Steps to repro:

1) Create and save a SQL file that encompasses code as

USE SandBoxDb;
GO

/* This is a test */
SELECT Top 1 *
FROM test;
GO
2) Configure a new tool to launch
C:Program FilesMicrosoft SQL Server100ToolsBinnSQLCMD.EXE

See the rest of the setup in this image: http://www.box.com/s/6n28qruy38ehqvxnqt85

An attempt to run produces an error:

—————————
EmEditor
—————————
The directory name is invalid.

C:Program FilesMicrosoft SQL Server100ToolsBinnSQLCMD.EXE
—————————
OK
—————————

Please note this directory is fine.

Hint: the spaces in the path cannot be tolerated.