Resolved this myself.
Okay managed to resolve this myself due to total lack of response I am afraid Ray.
I realized iRite was still installed.
So I unistalled iRite and HTML Editor and deleted the Dreamweaver cache as well as the HTMLEditor Folder on the site.
Then I reinstalled HTMLEditor Beta 2.0.1
I created a test page.
I had a CUSTOM CSS style sheet with the Body Font and Background colors I was after in it. I used the Customization to browse to the Style Sheet and Voila on publishing it showed the content exactly as it is on the Webpage.
I noticed sometimes the .js in the CUSTOM folder doesnt always pick up the changes. So sometimes you need to check the file and at the end you will see if it picked up the .css file or not when the styles are available in the options.
My only issue now is IMAGES.
I have to give a complete URL link to the Image to see it or you get the dreaded place holder. I am sure I read something about this somewhere so will look at that issue now and how to resolve it.