Thank you for your help Roddy.
I have copied the html files to my public dropbox folder copied the public link url to iWeb and it works perfectly. For me Dropbox is an interum solution until iCloud is released and tested against my purpose.
I would have to say that the iWeb 09 Hyperlinks processing in the Inspector does does not appear to work as one would expect because it would not accept any changes to the Apple default URL until I 'Made hyperlinks active' and then went back to the URL input and changed it to my link address. I would have thought that you made the input the URL first then made the Hyperlink active not the other way round.
The next step in the process is to move my Website to another Service provider given that Apple to date appears to have been silent as to their web hosting plans. Ant.. 🙂