Thanks Elliot this is the information that I was looking for. In terms of my current set up how would you suggest that i split up my 2 named instances that are both running on one machine? I would like to have one instance on each node.

After i have added the new node to the cluster should i use the cluster manager to move one instance to the new node, or should i actually re-install a new instance on the new node and move over all the databases from the existing instance?

Thanks