There's only 1 VM (the other VM I mentioned is a clients VM which is exhibiting the same issue).
Here's the ipconfig /all result:
Here's a copy of the ping FROM the server trying to ping itself via shortname:
Same server pinging itself via FQDN (::1: is a IPV6 address and apparently is normal for server 2008 to return according to a Microsofft KB I've read):
Lastly nslookup of the server:
Also thanks for the help gents This is much appriciated.
Dave