I would just like to thank those that responded to my post. It seems the problem returns/spaces were indeed in the config.sys under my theme, NOT the main config.sys.
I wish to thank Gustov and Zbigniew for helping me address this problem, everything seems to be working really well now.
A BIG THANKYOU to Martin and everyone else here, for all your help and support.
Moodle is a fantastic product and I wouldn't use anything else ...
If I come across any bugs in this BETA version, I'll be happy to let you know.