Is there an easy way to create many users from an external list that will also update the other needed information in my DNN DB, like the asp membership tables and  generate password, the userportal table and anything else I may have left out? 

I have tens of thousands of employees that I need to apply roles to but I can't seem to create accounts for them... but mainly my division which is 1000+.  All I have is a user name, last name, first name, email address through the employee phone directory flat file that I've imported in to a table in my DB.  FYI, I can't get permission to use Active directory - corporate security.

Thanks! Sherry

I have script you can use if you can get them into XML format:

Importing Users to DotNetNuke

I wouldn't recommend doing it via SQL Server 2005 itself. When a user is created in DNN, the passwords are encrypted based on the hashkeys from web.config. If you do this from the back-end, chances are that this will not occur.
If you're familiar with coding, look at the logic in Register.ascx.vb (found under the Website\Admin\security folder) and see what happens when you click on submit. The logic here is what is used to create a new user and it's pretty straight forward to use the function calls feeding it an excel spreadsheet/xml data or even data from another table and get it to create the users for you.
Additionally, if you go this route, you could also create the roles automatically for the newly created users based on whatever criteria your company has for placing users in roles.

Sanjay