I decided to try test 2, install worked well but the system always freezes during bootup when it gets to loading sshd. I've tried running interactive startup but it also freezes regardless of wether I hit Y or N for sshd. Sometimes the interactive start up will freeze before it gets to sshd, the strange thing is that the services which load fine during the non interactive startup mode will sometimes freeze in interactive mode, it seems to be quite random.
It's really been frustrating me. So I tried upgrading my core 4 installation next and it now also freezes during start up, I think it may be something to do with the 2.6.15 kernel and my hardware as I can boot to a command prompt by pointing grub to the old 2.6.14 kernel. Anyone have any advice?