All right, here is what happened!
Yesterday I have downloaded the new 2012-08-08-wheezy-armel.img and burned into my 2gb SD card where previously I was running 2012-06-18-wheezy-beta.img. After burning my raspi booted fine and I spent the all night on coding, (or trying to). Turned off the machine and went to bed. Today, same time same place I try to boot the raspi and I get a red led steady on and a random green flashing led, no booting!
I have tried unsuccessfully,
1- a different power supplier, (from 5v 0.7 a to 5v 1.2 a)
2- Unplug all peripherals
3- Set the monitor to accept video from HDMI source
4- Reinstall previous OS
Still nothing.......I have now only have the red led steady on ....... still no booting.
My SD card and power supplier have both worked fine since August when I first got the raspi so I doubt this is the case for the fault.
The sd card was burned using ImageWriter on Linux Ubuntu as it was previously with the old OS.
If anyone has a clue on what could have gone wrong and what can be done that would be great, I have already spent hours of my time and didn't get the raspi to work.....frustrations level are higher than the usual....
Thank you all for your time