It turns out that if your application is licensed using flex LM or flex enabled, it uses the first local hard disc to get a volume label ID. This is all well and good as long as the first drive that you have is C: drive, but everyone has c: drive first right?
Wrong, if you have tools like Microsoft Application Virtualisation (APP V) that can create virtual drives you can set these to use Drive B, In this case it was APP V causing the issue, once the APP v client was set to use another drive and a new licence file was create and authorised the software installs and works fine.
The error return by the FlexLm software is that the hardware has been changed or the licence file is corrupt. A good indicator is that if you compare the drive ID shown when creating the host file in LMtools (part of the FLEX LM tools) with that returned by typing vol c: in a command prompt, the two values should be the same ignoring a hyphen shown by the vol command.
worth remembering if you use both of these technologies