ok - the post above mentions- however the installation in the devnz folders has\skin\MusicLibrary2\skin.xml
2008-03-08 22:04:15.578 VERBOSE  ...about to check default skin
"\skin\Music Library2\skin.xml" - there is a space in the name in case that mattered.
Hence I created 2 new folders in BOTH the skin and skin2 directories and called them "MusicLibrary2" without the space and copied over the contents- and it worked! Dunno if thats always the case with other installations; but now having both versions of the folder name is working fine. Now on to learning the ML2 features...
Thanks Much all for your help.