You need to exit out of that as you can't type the sqlcmd once you are at the 1> 2> prompts. Type exit and hit enter to get back to the cmd prompt. It should say some variation of C:\yada yada yada>
Now type in the sqlcmd command but do not hit enter until the very end of the command. See my sqlcmd example above for the entire command. If you get 1>, then you didn't do it right.