I seemed to have found the problem.
The server had been built with the wrong and then the name was changed to what it should be....without me knowing 
Discovered this by using sp_helpserver
All I had to do was run the following
sp_dropserver 'old server name'
sp_addserver 'new server name', 'local'
And the stop and start the sql service. This seems to have solved the queuereader problem 
Cheers..Graeme