The Import Wizard fails to import when a HEX 00 (NULL string) character exists in the import file, although this is a supported character in SQL Server 2005.
Toad hangs and doesn't finish the import.
WORKAROUND:
If doing a binary search and replace all occurrences of HEX 00 in the file (remove all these occurrences), then the file should import correctly.
STATUS:
Waiting for a fix to be released in a future version of Toad for SQL Server.