Ok,
After much mucking around, I found the solution to my problem...
It seems OS X Leopard has broken JPA when used with SWT in my application...
I found that as soon as I added the SWT Jar to my test application I got the previous mentioned error when creating the Entitiy Manager Factory (I have no idea why, and am a bit of a newbie, so don't think I will ever find out why).
After installing old versions of Eclipse (not the problem), I found the Java 6 SE beta that Apple had temporarily available laying around on my external HD (Yay! I would really love to know what Apple is planning with Java... should I stay or should I go now??... but that is another story), installed the beta Java 6, and hey presto, I could now add in my SWT jar and my application works... swap the runtime in eclipse back to version 5 that comes with Leopard, and it breaks again.
Back to the later version of Eclipse, and yip, that works too with the beta Java 6 SE... so... now just have to wait and see when Apple releases version 6 properly so I can continue (or use Windows or Linux...).
Regards
Colin
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