FYI, I've been working with Antonio on this issue over e-mail. As far as I can tell, the CommandLineTemplate is correct, however the %TargetInstance.Name% property being passed to the batch file does not have quotes around it. If the file name being created has spaces in its name, then I can see how the script might misinterpret the arguments.
My recommendation would be to test a batch file that does not take any parameters at first. Once that works, then adding the parameters back in can be done.
I tested out a similar setup, which simply runs this in a batch file:
ipconfig > c:\test.log
...and it works great on a Windows 7 Enterprise x64 client.
Cheers,
Trevor Sullivan
http://trevorsullivan.net
http://twitter.com/pcgeek86