Cheers all for the replies and advice. Ok, a strange one this and you will no doubt be suprised to hear that I didn't need to run it as administrator or in XP compatibility.
I just started the whole install process again and it just.....well.....installed.
It did the whole DirectX procedure and then patched the game then I launched it and it seems ok (up to now).
Even recognised my Subsonic Wireless controller and let me set it up which is good as I did need to download the drivers
in XP. Perhaps my faith may yet be restored with Windows 7.
Now, I have the task of transferring my save data from XP to the install folder in Win 7. I think if I put it in a pen drive or something and copy it over to the game folder then I won't have to start all over again (70% Career progress).
Any ideas guys?