Would you believe it I have finally got the form working!
I went through exactly the same process as before. The only difference this time is after I created the form, I then applied my site template to check validation was working as I had problems with this before. Itv was all fine so I then applied the UE behaviour and uploaded it it to the server, AND IT WORKED!
One other thing that is different about it this time is that it is not inside a sub-directory. ( Before it was in 'test-site.' ) Would this have been the issue?
Subsequently there is still the issue with crashing of which I have noticed a trend with. I opened up the email behaviour and then clicked the envelope to open up the email settings, then immediately pressed cancel. I repeated this and on the third click of the Envelope icon it crashed dreamweaver. I repeated this process and it was the same every time, always crashing on the third click of the envelope icon.
I understand that you probably wouldn't normally experience this problem as most of the time you would only enter the settings the once. But i suppose when you experience problems as I have and you're repeatedly changing the settings then you would see this more.
I am not to concerned about Skyping for now as the real issue is resolved but if you believe it is worth it for other reasons such as the crashing I am happy to do so.
Thanks for your patience with this!