All sorted – did some checks and re-write was working, but i had stupidly installed super cache earlier which was messing with it!
Thanks for the reply, I host the site locally on my own server running 2012 R2. I have the latest IIS with URL Rewrite installed and setup.
I have actually just tried importing my htaccess file which worked fine, but the rules still don’t solve the problem. If it is set to http://website.com/%postname%/ i get 404’s and if i set it to http://website.com/index.php/%postname%/ it will work fine but still with the index.php.