I think you were on to something with the microswitch. I went a fitted a new thermistor this afternoon. Still exactly the same. Called technical and spoke to someone who seemed to know what he was talking about, said it was almost certainly the DHW microswitch. That's why the hot water thermostat is adjusting the temp for the heating as the board thinks its in hot water mode. So going to order one and fit it. The guy said he was an engineer for potterton previously and had seen this a fair few times before.
I will let you know if it works once I have fitted it.
Yeah let me know if it is that. I'm 99% sure of it.