Many thanks for that it works as expected. So i take it i was on the right lines that the blog page defaults to using index.php if there is no actual template for the blog? I assume that now there is a home.php this is what the blog page picks up as default?
The only other thing that I would like to do is to add a few lines of text before the blog, a bit like on your blog page (is that done with a sticky post or some other way)? or do i add some things to the new home.php template file in the content section etc? I only want this text above the posts on the blog page and not every single post page.
Many thanks for your help and I do seem to be learning something :o)