Right, still in the middle of a reinstall - OS is on and just reconfiguring everything and installing programmes and drivers etc...

Back to the BT problem. I took my BT dongle and plugged it into my other Dell PC (downstairs one) which also runs XP SP2 and has never seen a BT dongle before.

Immediately it popped a balloon up saying new hardware found and opened the new hardware wizard.

But again it searched for a driver and couldn't find one and ended up NOT installing the device

No sign of the Bluetooth Places in the Device manager either. So it HAS to be this device!!! It obviously doesn't have an XP signature or whatever or doesn't have a driver preinstalled on the XP OS.....