Could not find server ‘DATABASE_NAME′ in sys.servers error

The code below is embedded in a .sql file in a vb.net project. It gives me an error:

Could not find server ‘DATABASE_NAME′ in sys.servers. Verify that the correct server name was specified. If necessary, execute the stored procedure sp_addlinkedserver to add the server to sys.servers.

I checked in sys.server and the LinkedDatabaseName is returned if i do a select * from sys.servers

Here is the code where I get the error....

-----------------------------------
-- Obs Set Obs Set Obs Item Xref
-----------------------------------
-- STEP 1: txmr_TABLE1 to exp_TABLE1

DELETE FROM LinkedDatabaseName...exp_TABLE1
Select distinct newid() as GUID,
       b.ObsSetCode  as 'parObsSetCode',
       c.ObsSetCode  as 'chObsSetCode',
       d.ObsItemCode as 'chObsItemCode'
Into #tmp_exp_TABLE1
From   $$DATABASE_NAME$$..txmr_TABLE1 a
      Inner Join $$DATABASE_NAME$$..txmr_obs_set  b On a.parObsSetGUID  = b.GUID
      Left  Join $$DATABASE_NAME$$..txmr_obs_set  c On a.chObsSetGUID   = c.GUID
      Left Join  $$DATABASE_NAME$$..txmr_obs_item  d On a.chObsItemGUID = d.GUID
Order By b.ObsSetCode   

Select * From #tmp_exp_TABLE1


EXEC $$DATABASE_NAME$$..dbo.txmr_ExtractPOCIS '#tmp_exp_TABLE1', 
                                         '$$DATABASE_NAME$$.dbo.txmr_TABLE1_chg', 
                                         @FromVersion, 
                                         @ToVersion;

INSERT INTO LinkedDatabaseName...exp_TABLE1 (GUID, parObsSetCode, chObsSetCode, chObsItemCode)
SELECT GUID, parObsSetCode, chObsSetCode, chObsItemCode
FROM #tmp_exp_TABLE1
ORDER BY parObsSetCode, chObsSetCode;
DROP TABLE #tmp_exp_TABLE1;

SELECT COUNT(*), 'exp_TABLE1' FROM LinkedDatabaseName...exp_TABLE1;

-- STEP 2: txmr_TABLE1_chg to exp_TABLE1_chg

DELETE FROM LinkedDatabaseName...exp_TABLE1_chg;
INSERT INTO LinkedDatabaseName...exp_TABLE1_chg (ChangeID, DateModified, parObsSetCode, chObsSetCode, chObsItemCode, RationaleLink, RationaleFreeText)
SELECT a.GUID              as 'ChangeID', 
       a.DateModified      as 'DateModified', 
       b.ObsSetCode        as 'parObsSetCode', 
       c.ObsSetCode        as 'chObsSetCode', 
       d.ObsItemCode       as 'chObsItemCode', 
       r.RationaleID       as 'RationaleLink', 
       a.RationaleFreeText as 'RationaleFreeText' 
FROM $$DATABASE_NAME$$..txmr_TABLE1_chg a
    INNER JOIN $$DATABASE_NAME$$..txmr_obs_set   b  ON a.parObsSetGUID = b.GUID
    LEFT JOIN  $$DATABASE_NAME$$..txmr_obs_set   c  ON a.chObsSetGUID  = c.GUID
    LEFT JOIN  $$DATABASE_NAME$$..txmr_obs_item  d  ON a.chObsItemGUID = d.GUID
    LEFT JOIN  $$DATABASE_NAME$$..txmr_rationale r  ON a.RationaleGUID    = r.GUID
WHERE @StartDate <= a.DateModified AND @EndDate > a.DateModified
ORDER BY a.DateModified, b.ObsSetCode;

SELECT COUNT(*), 'exp_TABLE1_chg' 
FROM LinkedDatabaseName...exp_TABLE1_chg;