TypeMock doesn't play well with TestDriven.NET + Coverage

I am using TypeMock Enterprise (Demo). Everything works fine except when I user TestDriver.Net's "Test with Coverage" feature. I'm in VisualStudio 2005. I have TestDriven.NET 2.0 and NCover 1.5.4 installed. Our tests are built and run using MBUnit 2.3.

This feature will work with tests that don't have TypeMock recorder code in them. But those that do fail with a TypeMockException:
"Cannot use Return in this sequence, there must be a mocked statment first"

From the docs, I learn this is expected. Ok, so I go to TypeMock Configuration in VStudio, and Link with NCover.

Now, when I run any test using "Test with Coverage" (those with and without TypeMock recorder code), I get 0 tests run, with an error:
"NCover couldn't create a coverage report."

Looking for some direction/help please. We like the product so far, but this is a real problem. Thanks
Riley