Hi everyone,
Thanks heaps for all the suggestions, turns out the problem was the novice viewer.
I took the scope out to an astronmer friend last night, turns out I was not following the collimation process correctly. I suppose that is what happens when you only read about things and never actually see them happen.
Anyway we collimated it and it all works fine now.
Bad collimation was the problem and is a bit of a problem with the collapsible versions, the scope moves a bit between each collapse and extension.