Thank you seeker for the help but sadly this didn't work either.
I've blown the OS away totally and reinstalled it in case there was something hanging about in the registry or an inf files somewhere that was doing something odd but the same thing happens.
As soon as the OS starts and it prompts me for the software install I do as you mentioned and point it the driver and it reports that it's not the right driver for the hardware. There is no option to install anyway, only back or finish to disable the device and install drivers later. I'm the IT manager for our business and I can assure you I'm clicking the right button(s).
I've had this same discussion on a number of lists and forums now and people can either get it to work or not and I'm starting to think that there may have been more than one version of the digitizer chipset released or something.
That said, in the mean time I think I'm going to go back to 98se : ) so I can actually make use of it.
Thanks again all the same.