Hey Stacy,
I use the below syntax in python very successfully. Does the output from model builder differ from this?
# Process: Make Query Table...
try:
print "Making table..."
arcpy.MakeQueryTable_management(tbl_source, event_table, "NO_KEY_FIELD", "", "", "")
except:
print arcpy.GetMessages()
# Process: Make XY Event Layer...
print "Creating XY event layer..."
arcpy.MakeXYEventLayer_management(event_table, "X", "Y", event_layer, "PROJCS['NAD_1983_UTM_Zone_17N',GEOGCS['GCS_North_American_1983',DATUM['D_North_American_1983',SPHEROID['GRS_1980',6378137.0,298.257222101]],PRIMEM['Greenwich',0.0],UNIT['Degree',0.0174532925199433]],PROJECTION['Transverse_Mercator'],PARAMETER['False_Easting',500000.0],PARAMETER['False_Northing',0.0],PARAMETER['Central_Meridian',-81.0],PARAMETER['Scale_Factor',0.9996],PARAMETER['Latitude_Of_Origin',0.0],UNIT['Meter',1.0]];-5120900 -9998100 1000;0 1;0 1;0.002;0.002;0.00002;IsHighPrecision")
Cheers