Thanks for your comments chaps, I now have it working

, after a re-think and more reading etc here is what I had to do:
1) connect the PSU +12V (Yellow) to the 12v input on the mech
2) connect the PSU GND (Black) to the Ov input on the Mech
3) connect pin 1 of the Sentinel (Common a) to the i-PAC Ground
4) connect Coin Accept in my case Pin 5 for the 20p's to the Coin 1 on i-PAC
5) IMPORTANT PART, connect the 5.1v Zenner Diode between the Coin Accept and Common a, ensuring the gate is against the Coin cable NOT the Ground. (your i-PAC will blow if not corrected right

)
I learnt this at the expense of my i-PAC so had to order another, mind you I was not that fussed as I wanted the i-PAC 2, my original i-PAC is some 7/8 years old now.
So, now when I slot in a 20p a pulse is sent to the i-PAC and 5 is registered

result, now to fit the coin door and mech properly.