Thanks everyone for the additional input.
At this stage, Yes, I do initial exp, sat, clarity etc in LR and then the cloning , layers etc work in PSE
I am not doing any serious printing at home as of yet and only occasionally get something printed at an outside company.
Elie wrote:
Instead, I would recommend that he set his LR Preferences to send to PSE a tif in sRGB (and he might as well save time by having the reduction to 8 bits done at this point as well). For most people - those who are sending the image to the web or to an outside printer - it is no hardship editing in PSE in sRGB rather than converting later, and in fact there are certain advantages.
I will have a play with this way as well
elie wrote:
Hi Dan,
My main concern is that the OP might be tempted to doing some major colour or tone shifting in PSE.
Yes, that's always possible as part of my experimenting and learning
Dan, you sorted out the initial problem ---- thanks 
Elie, you have given me serious food for thought for changes to the way I transfer images between LR and PSE for further adjustments
Edward wrote:
I would also recommend to the OP that you do as much as possible in LR before converting to 8bits and using PSE in case you are not doing that - it sounds like you are perhaps wanting to load the raw into PSE. Really, if you have LR, then it is better to do the raw conversion and major adjustments in LR (essentially because it works in 16bit). Then convert to 8bit sRGB TIFF and adjust locally in PSE. PSE will essentially be doing the raw to 8bit TIFF conversion internally anyway and with less control than LR.
Loading the .CR2 file directly into PSE only came about after seeing the crap result I was getting when I had saved the LR --> PSE file to a JPG from PSE and not understanding the problem
Alan, appreciate your additional comments as well
Again the combined brain power of members wins 
cheers
Dave