Thanks for your response Thorsten. I did look in the knldiag.err and found this error:
wrong path 'C:\sapdb\CHD\dbsys\SYS' (dated 2014-09-04 15:39:58) Noticed that that file was there in the source system, but unable to copy across as it was in use (probably) as the db was up and in use. I went in to initialise the target dba and got it to create it's own 'SYS' file (under this structure) and this error has not been logged in the knldiag.err file since.