The only error I could find was in qpsmtpd that authentication had failed - something I already knew from the thunderbird client messages. People were able to logon though.
I found reseting a user password on the server to the same password they had logged on with sorted it.
In the end, I had everyone do a password reset and the issue was resolved.
I dont know if this is a result of removing fuzzyocr or whether it is a seperate issue, maybe something getting corrupted or ??? I was told after the update the email was working. I didnt check it myself and am leaning towards thinking I may have been give some bad info.
What I do know is I upgraded another system a while back using the same Cd and it went like clockwork. No issues at all.