Hi magickman,
Thanks for that, not sure there is anything missing, its the same file that is online and thats working ok.
So here is the code just incase it needs to be different on xampp or localhost.
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head profile="http://gmpg.org/xfn/11">
<meta http-equiv="Content-Type" content="<?php bloginfo('html_type'); ?>; charset=<?php bloginfo('charset'); ?>" />
<title><?php if(is_home()) { echo bloginfo('name'); } else { wp_title(''); } ?></title>
<link rel="shortcut icon" href="<?php if (get_option('favicon')):?><?php echo get_option('favicon');?><? else :?><?php bloginfo('stylesheet_directory'); ?>/favicon.ico<? endif;?>" type="image/x-icon" />
<meta name="generator" content="WordPress <?php bloginfo('version'); ?>" /> <!-- leave this for stats -->
<link rel="stylesheet" href="<?php bloginfo('stylesheet_url'); ?>" type="text/css" media="all" />
<link rel="stylesheet" href="<?php bloginfo('stylesheet_directory'); ?>/print.css" type="text/css" media="print" />
<!-- Sidebar docking boxes (dbx) by Brothercake - http://www.brothercake.com/ -->
<script type="text/javascript" src="<?php bloginfo('stylesheet_directory'); ?>/dbx.js"></script>
<script type="text/javascript" src="<?php bloginfo('stylesheet_directory'); ?>/dbx-key.js"></script>
<link rel="stylesheet" type="text/css" href="<?php bloginfo('stylesheet_directory'); ?>/dbx.css" media="screen, projection" />
<link rel="alternate" type="application/rss+xml" title="<?php bloginfo('name'); ?> RSS Feed" href="<?php bloginfo('rss2_url'); ?>" />
<link rel="pingback" href="<?php bloginfo('pingback_url'); ?>" />
<!--[if lt IE 8]>
<script src="http://ie7-js.googlecode.com/svn/version/2.0(beta3)/IE8.js" type="text/javascript"></script>
<![endif]-->
<!--[if IE 6]>
<script src="<?php bloginfo('stylesheet_directory'); ?>/belatedpng.js"></script>
<script>
DD_belatedPNG.fix('.png_bg, img, #sidebar ul li');
</script>
<style>
#header .blogtitle .sheen{display: none;height: 1px;}
</style>
<![endif]-->
<?php wp_head(); ?>
</head>
<body>
<div id="page" class="fix">
<div id="wrapper" class="fix">
<div id="header" class="fix">
<?php if(get_option('custom-header')):?>
<img class="headerimage" src="<?php echo get_option('custom-header');?>" alt="<?php bloginfo('name'); ?>"/>
<?php else:?>
<h1 class="blogtitle">"><div class="sheen"></div><?php bloginfo('name'); ?></h1>
<div class="description"><?php bloginfo('description'); ?></div>
<?php endif; ?>
</div><!-- /header -->
<div id="nav" class="fix">
<ul class="fix">
<li class="page_item ">/" title="Home"><img src="<?php bloginfo('stylesheet_directory'); ?>/images/home-icon-trans.png"/>
<?php
$frontpage_id = get_option('page_on_front');
wp_list_pages('sort_column=menu_order&exclude='.$frontpage_id.'&depth=1&title_li=');?>
<?php include (TEMPLATEPATH . '/searchform.php'); ?>
</div><!-- /nav -->
<div id="container" class="fix">
<div id="left-col">