Right, after much reading I think I have found the problem!... thanks to the very technical posts by The Zigmeisterzumba, excellent reading by the way, thanks.
The top pusher arm (the one that starts and stops the chrono) now works fine after working the button a few times. I guess the cogs need bedding in so that the chrono starts and stops on command every time.
Now if I stop the chrono and then press the bottom button (the one that supposed to reset the hands) the chrono just starts again, this is where The Zigmeisterzumba's posts come in most helpfull!
The Zigmeisterzumba I have borrowed your pic here to deface I hope you don't mind.
As I have shown above, when the reset pusher is pressed (Marked as the blue A arrow) to reset the chrono, the end of the pusher identified as number 1 arrow should press on the B piece of metal (sorry dont know name) and force it in the direction of the number 3 arrow. This would then reset the chrono (as I understand it, please someone let me know if this is wrong). However mine is actually not pushing item B in direction of 3 but back in the direction of position 2 which is actually the position of a running chrono movement, hence my chrono does not reset but just start moving again.
My conclusion is thus that the pusher arm is not quite "getting over" the edge on item B in order to push in the the desired direction. It must be just short of being over as it did actually reset correctly on 2 occasions.
Now 2 questions
1. Does the above sound correct to those in the know?
2. Is it easily taken care of in any way (I really dont fancy sending the watch back to china if I can help it).
Thanks,
Lee.