I am hitting some performance bottlenecks with my C# client inserting bulk data into a SQL Server 2005 database and I\'m looking for ways in which to speed up the process.>
I think that it sounds like this could be done using SSIS packages. They're similar to SQL 2000's DTS packages. I've used them to successfully transform everything from plain text CSV files, from existing SQL tables, and even from XLS files with 6-digit rows spanned across multiple worksheets. You could use C# to transform the data into an importable format (CSV, XLS, etc), then have your SQL server run a scheduled SSIS job to import the data.
It's pretty easy to create an SSIS package, there's a wizard built-into SQL Server's Enterprise Manager tool (labeled "Import Data" I think), and at the end of the wizard it gives you the option of saving it as an SSIS package. There's a bunch more info on Technet as well.