Think I've found the problem, it seems the art of misdirection is alive and kicking:

in the Playback Devices dialog, right-click speakers and select properties
go to advanced tab, and click "Restore defaults" button.
And there was sound.

And then Squeezeplay could then connect to my server.


The log file was helpful in putting me onto the audio issue, I was focusing on the network as it wouldn't connect.

Thanks a lot for your help everyone, would not have solved it without your help.
Regards
Nige