This has been resolved. The issue was there was a space in the folder name of the theme but BuddyPress was looking for the custom css file WITHOUT the spaces. To resolve this I just renamed the theme folder to not have spaces in it.
I am using an Artisteer theme. I am not sure what other information you need. I am moving the buddypress.css file to a folder /css/ in my themes directory. If i do not move it over everything looks ok, but as soon as I move buddypress.css over it seems to remove all styling from the default BP install.