Hi guys! Thanks to all those that helped. I found out what the problem was. Yes it is was something stupid on my behalf I hear u think. I had left the update cd in the mkIII box. I didnt take it out and put the original cd back in that came with the car. With the original cd back in, it lets me choose which country I want to go to etc.

One question I still have left unanswered is that I thought the whole point of updating the OS was not only to get a new look but to get the latest features that come in the new cars and new mkIV box like post code option and updated maps. I still dont have the post code option to use.
Also last nite, I was planning ahead to go to Cardiff this morning and so before I updated the system, I checked to see whether the address I was going to was in the maps (and it wasnt) and now after updating the system, it still doesnt have the address that I was looking for. (I managed to get there by borrowing another person's tomtom). Is there is a reason for this or am I truly having a blonde moment???

The external temperature problem I was having has seemed to fix itself (before I put the original cd back in). It now shows that I do live in UK and the temperature is 7C and not -25C. Maybe updating the OS must have affected its wirings or link to the computer or something.