Ajeh, managed to get it fixed.. well sort of. After posting my previous comment I realized that perhaps it may just be the 'how you hear about us' mod. So I have commented out the relevant lines out of the modules and templates files regarding the mod and creating an account works brilliant now...
Will do a fresh install of the mod to see if it fixes itself up otherwise I think I will need to jump to Dr Bytes thread.

Thanks so much for your help so far.

Jay