*RESOVLED: I was using the tool improperly, it needs to be run from model space to function properly.
I need to create annotation within a data driven page mxd that has 125 pages. I've setup the index shapefile which contains scales and rotations for each grid. I came across the "Tiled Labels To Annotation" cartography tool and based on my understanding, it should create annotation labels for the entire mapbook (all 125 pages). Unfortunately it is only creating annotation for the page that happens to be visible when the tool is executed. I'm using ArcMap 10.0, Service pack 4, ArcView license, on XP Pro 32-bit o/s. I've tried running the tool as a batch, normally, and checking "generate unplaced annotation" with no difference in the output. It does create all the geodatabase feature classes based on the Index layers scales, they're just unpopulated with any annotation.