Something else broken, the firewall!
MS are really doing their best to push me towards Mac/Linux!
Now I've discovered the firewall in W7 is useless. I have an app that everyone runs that connects to and SQL Server. But on W7 all i get the the usual Error 26 - 26 - locating server instance yada yada which bascially means it can't connect.
Done everything as per MS - enable the App in the firewall rules, open the TCP/UDP port 1434 to allow SQL browser but to no avail.
Logging is enabled in the firewall but the log file remains empty - yet as soon as I disabled the firewall the app works straight away. Honestly this OS is barely suitable for home use at the moment!
Edit: proof positive that the W7 firewall is a crock, when you remove firewall policies from a GPO, they remain on the affected machines no matter how many reboots/gpupdates you do! looks like W7 will have to run with the firewall disabled - what a step backward