Right I have sorted it.
My PS3 was hooked up via wireless, my laptop was going through ethernet.
I bought a powerline AV kit so I could hook my PS3 via ethernet - both laptop and PS3 are now connected to the same Netgear switch which in turn comes off the Thompson Router.
Once done Voila! instant recognition on the PS3. Now that I have the program going it is very impressive to say the least and has far more features than a paid for service like TwonkyMedia. Great work guys!
To the OP - I suspect you are using a Thompson router as the auto assign addresses always are in the 192.168.1.6x range. I also suspect your PS3 is hooked in via wireless. If you can hook it up via ethernet - trust me it will solve a lot of problems....