All appears to go smooth with the plupload field and when I click 'Generate Node Entities' the images appear to upload smoothly, then the page refreshes..and nothing happens and no nodes are created.
The log shows the following:
Page Not Found:
Location http://mytestsite.com/sites/all/themes/mythemename/system.messages.css
Referrer http://mytestsite.com/admin/content/file/bulk_upload

The same error for system.theme.css and system.menus.css

It appear to me that the bulk upload module is looking in the wrong directory for these css files.