Turn Table to Turn Feature Class tool is meant to convert ArcView 3.x or ArcInfo Workstation Turn table. So the tool expects the input to be in that format.
To convert turn data from vendors such as TeleAtlas, try this VBA sample. You will have to change the names in the "Settings" section in the code.I was able to successfully run this sample on my test data with ArcGIS 10 and It also works in 9.3/9.3.1
As VBA will not be supported with ArcGIS after 10.0 release, we will make this sample available as a python script tool in near future.