I have tried a re-install and got a bit further.
It looks like the DCERouter is running fine now.
However, it still starts to load up X Windows and the mouse and keyboard work fine for a while and before it can display anything the mouse and keyboard will freeze up and become unusable.
Remotely logging into the machine work fine and I installed a windows Orbiter and it can connect to the room fine and even start media etc on the hybrid core.
I can't find anything obvious in the log files.
Does anyone have any ideas where to look for what the problem might be.
I thought it was driver problems - but it works fine for a little while, so it must be something that the orbiter tries to load.