The place where <=== ERROR is shown causes an *Object reference not set to an instance of an object* error. 
The file hibernate.cfg.xml has been placed in the output directory, so it can see it.
I have included a copy below, just in case it's layout is the cause.
Can anyone please tell me why
Thanks
BOb
Code:
 public sealed class Global
    {
        private static Configuration nhConfig;
        private static ISessionFactory nhFactory;
        public static ISession NHSession
        {
            get
            {
                if (nhFactory == null)
                {
                    nhConfig = new Configuration();
                    
                    nhConfig.Configure();                       <===== ERROR
                    nhConfig.AddAssembly("DAL");
                    nhFactory = nhConfig.BuildSessionFactory();                   
                }
                return nhFactory.OpenSession();
            }
        }
        private Global ()
        {
        }
    }
hibernate.cfg.xml
Code:
<?xml version="1.0" encoding="utf-8" ?>
<configuration>
   <configSections>
      <section name="log4net" type="log4net.Config.Log4NetConfigurationSectionHandler, log4net" />
      <section name="nhibernate" type="System.Configuration.NameValueSectionHandler, System, Version=1.0.5000.0,Culture=neutral, PublicKeyToken=b77a5c561934e089"   />
   </configSections>
   
   <log4net>
      <appender name="rollingFile" type="log4net.Appender.RollingFileAppender, log4net" >         
         <param name="File" value="log.txt" />
         <param name="AppendToFile" value="true" />
         <param name="RollingStyle" value="Date" />
         <param name="DatePattern" value="yyyy.MM.dd" />
         <param name="StaticLogFileName" value="true" />
         <layout type="log4net.Layout.PatternLayout, log4net">
            <param name="ConversionPattern" value="%d [%t] %-5p %c [%x] <%X{auth}> - %m%n" />
         </layout>
      </appender>
      <root>
         <priority value="DEBUG" />
         <appender-ref ref="rollingFile" />
      </root>   
   </log4net>
   <nhibernate>
      <add key="hibernate.connection.provider" value="NHibernate.Connection.DriverConnectionProvider" />
      <add key="hibernate.dialect" value="NHibernate.Dialect.MsSql2000Dialect" />
      <add key="hibernate.connection.driver_class" value="NHibernate.Driver.SqlClientDriver" />
      <add key="hibernate.connection.connection_string" value="Server=localhost;Database=LLBProTest;User=sa;Pwd=sqladmin;" />
      <add key="hibernate.show_sql" value="true" />
   </nhibernate>
</configuration>
[/code]