Ron,

I am running into a similar situation.  Did you figure this out?

** Update **

I figured it out. Key point here is, The request you are sending should not be associated with a batch. So now I have

"UseDefaultBatch" selected with batch class specified in "DefaultBatchClass". I do not have Rollover Schedule specified, But I have "RolloverLimit" specified at 50. As soon BO receives 50 "Record" requests, It is rolling over into a file. I can see these records being added into a temp dir I specified in "IntermediateFilePath "