Thanks Simon for all your help. Success at last! It was a faulty 3 way switch!!! I ended up replacing the 4 pots and the guitar sounds great. Had to do a little modifying on the nut and bridge to achieve a closer action. It's pretty smooth and great tone. Probably slightly less silky to play at the moment but maybe it will settle in with some playing. Thanks again for your advice and expert help.
Kind Regards. Lewis (Australia)