Thanks Derokorian - ok, this is interesting now... i output the session_id() at 3 points.
1 - Home page to register an account
2 - Verification of registration page (i.e. a link received by email - requiring user to re-enter password to make account active)
3 - Back to home page (but this time it should be in a 'logged in' state - however isnt because of session issues).
At each stage I seem to be getting a different session_id()
1 - 6evosh8so496fu3j4g4d1nntd2
2 - aq7fnfnqu4m98puelvstqr7911
3 - g0ut714v2c5v6fd4qe9nu3kkr5
Thoughts?