Finally found a solution for this issue.

Basically the handset that was sent to me had been blacklisted via the IMEI number. It's seems to be a vodafone issue and has happened to a few people who had upgraded to a N900.

Apparently there have been a few thefts which have resulted in a lot of handsets being blacklisted and due to the amount numbers in the IMEI vodafone staff have input incorrect codes which have resulted in new phones like mine being blacklisted.

The result is that I have got it unblocked but I have to wait 72hours (boo hoo) but at least I'll be able to enjoy it finally.

A question, once I have it up and running should I upgrade to PR1.2 straight away?

Thanks guys.