Thanks guys, my OS is windows 7, I have I.P version 3.8 and downloaded the canon driver vu600en and still no go. It used to work with vista but maybe have to wait for Canon to release new drivers for windows 7.
I also have xp virtual machine and still does not work whereas before it was once all good.
All started when I got my laptop upgraded to win 7 it actually worked for two shots then decided to stop transfering the images and leaving the camera jammed and blinking.
Cheers Daniel.