I appreciate the note and understand you guys are on a different time to the UK so I had to find a solution fast. The only way to fix was to make note of my final settings an re do the preset from scratch - ensuring I didnt change any WIDTH setting once the preset has been setup - the preset was overwritten an hour or so after my post above.
I purchased this extension to save me time - it took 3 hours to identify the problem and fix. Lost more than the cost of the extension and the client had to wait another day to see the site. This stuff should work straight out the box.
I did a screen dump of the preview while working yesterday - see attached - this had all width, padding and margin settings ALL the same for ALL 3 levels, ie they were changed from a basic preset - via EDIT in property box, and then changed again as I initially miscalculated the width, that said it all should have been the same. Once the widths had been changed - the menu settings would never resolve themselves correctly.