So, I spent about an hour on the phone to Apple Support (there is no Apple Store here in Hong Kong yet!).
I was asked to delete a system file, and restart, Check my HDD in recovery mode, and boot up in Safe mode - all to no avail!!!
I then got very worried when the technician started saying something like "Do you have all of your files backed up somewhere???"
I have a LaCie Wireless Space, which has not been updated to provide Time Machine bakups again! Old ATF problems, so until the time that I get this sorted, no, I will not erase my HDD!!!
Anyone with this problem who has had it fixed?
D