Replying to my pwn post here, in the hope it helps others who may expereince same issue.
I managed to enter Repair mode as per above, however, when it tried to repair the iPhoto Library it gave the below error (Library could not be opened) when it reached 5%. Tried several times, and even reverted to original photo library from Time Machine backup and same effect each time.
I decided to give the conversion one last try, and left it over night. By about 2 hours it was stuck at 17% again. However I decided to check the file system, and i could see that the preparation folders which Photos created where incrementing in number of files, and time stamp. So it looked like it wasn't stuck at 17% and was in fact performing the conversion of the library.
Result, This morning I find Photos is up and running with my photo library, all 285GB of it !! Phew!
The original iPhoto library file size was 304GB, and after the conversion I have the two files as shown above. I presume it is safe to delete the 'iPhoto Library.migratedphotolibrary' file ? I'll backup and see what happens when I do.