I tried including the space (copy $source + " " + $w2kDesktop) and I receive this error:
ERROR : Error in expression.!
Script: C:\WINNT\SYSVOL\sysvol\domain\scripts\training.kix
Line : 5

I think the reason I get the file not found error is bacuase of the space not being included.
This is driving me crazy!
I do appreciate the help though. Ecspecially on a Saturday.

Any other ideas?