Well I have more to report, took the pump off today, pleased and sorry to say that the pump was MASSIVELY at fault, it had completely disintegrated! My advice to anyone with this issue is to ignore the haynes manual it is TOTALY rubbish!

you have to take the cambelt cover off, you do not have to take the pulley off the water pump and you do need to drop/raise the engine! Also watch the fuel filter/power steering pump.

Following all the effort and also changing the tensioner pulley i still have a massive fan belt slipping noise - tensioner was absolutely fine, but the pulley was shot, I am thinking the noise is coming from the power steering pump pulley or the pump itself, will be spraying some focused WD later to see if I can narrow it down. To cap it all off, the heater inside is not working either - my thoughts are that plastic fragments have got stuck in the matrix sigh.

On a positive the over heating is absolutely fine now and the power is about where i think it should be.

the heater matrix may not be blocked and it could be the heater is cold because there is an airlock in the system and it still needs bled

sorry but how do you do that? nothing in the haynes liar about it and cant see anywhere to let air out, according to haynes it automatically does it?

To bleed the water system top up water to max level and fast idle the car at about 2000 rpm with blowers on full and direct vent to screen so you can feel when it's gone hot did my lads punto this way yesterday took a while as it had just had an engine change if you don't get it after say 10 mins stop go an have a cuppa and you should hear the air bubbling back out of the resiviour if so it will drop the water level top it back up and try again .

My old man takes the cap off and starts the car and lets it idle to warm up. Once its warm he will turn the fans on to see if there is any heat coming out. If there is a then he will top up the water if required. Switch car off and put cap on. Job done.

Can also help to have the front of the var in the air a bit - encourage air to bubble upwards.

(Steads: How did you get on with the Punto? I found the 1.2 8v Punto engine was nightmare to bleed!!)

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Sean your correct it did take a bit left it and went for a cuppa when I came back you could hear the air coming up through the expansion tank not bad though quit chuffed paid fifty quid for engine an box complete with starter alternator fired up virtually straight away and you could tell it had been sitting in a shed for some time runs like a dream my son says so fifty quid well spent.

Heater works now thanks for the advice :) just need to change the belt to stop the squeaking and the heater now only blows hot so guessing the controls are nick nacked. thanks for the help and advice guys

Does it blow on setting 4 only?

blows on all settings, was not working on setting 2 but changed the buttons and it works fine now, think i may not have connected it back together correctly hence only blowing hot - fingers crossed