I figured it out... the path issue was a bit of a miss-lead.
I took Calamity's advise and moved my folder structure around, so that all my stuff in a root folder of Arcade. This doesn't really matter, but I respect Calamity for all the work he has put in, so the least I could do is follow his reccomendation.
The fix - Windows8.1
1) Right click on groovymame.exe (or whatever you may have renamed it to). Select - Properties, Compatibility. Then select "Run this program as administrator"
This is important so that goovymame and switchres can read the required reg stuff.
2) When you are running a frontend like hyperspin, which then launches groovymame, you should ALSO enable the compatibility mode!
3) Same for LEDBlinky too.
Not exactly sure on the reason, but I suspect that it has something to do with Windows security and stopping apps from escalating priv.
Thanks to all of those who took the time to look at this, and a special thankyou to all those involved in the CRT_Emu drivers and Groovymame.
My cabinet looks better than ever!