My problem solved!
There is obviously a problem with "Create Email" in Data Bridge 1.0.9 when creating an email from a working template file sourced from the database.
I have solved my problem by going back to Dreamweaver CS5.5 which luckily still had Universal Email 4 installed.
Within 10 minutes I had it all working correctly.
So you have some work to do on Data Bridge 1.0.9 > Create Email Message!!!!