Hadn't seen anybody else post this so may help somebody else when they come across the issue
If anybody else is getting an issue whereby they were seeing an "incorrect username or password" error
I made sure all usernames and passwords were correct but still had no joy, analysing using tcpflow told me I was not binding properly to AD long story short it was because of referrer / referral issues that I resolved by querying against the global catalog by specifying port 3268 in config.php
My config.php snippet (all was required to get it to work - installing php-ldap helped to !):
$config['site']['languages']=array(
'en-us' => array('q' => 1, 'lang' => 'en', 'name' => 'English (US)', 'direction' => 'ltr'),
'en-gb' => array('q' => 1, 'lang' => 'en_GB', 'name' => 'English (British)', 'direction' => 'ltr'),
'en_GB' => array('q' => 1, 'lang' => 'en_GB', 'name' => 'English (British)', 'direction' => 'ltr'),
'en' => array('q' => 1, 'lang' => 'en', 'name' => 'English (US)', 'direction' => 'ltr'),
);
addPlugin('ldapAuthentication', array(
'provider_name'=>'mydomain.co.uk',
'port'=>'3268',
'authoritative'=>true,
'autoregistration'=>true,
'binddn'=>'domain\myusername',
'bindpw'=>'mypassword',
'basedn'=>'DC=mydomain,DC=co,DC=uk',
'host'=>array('DC.mydomain.co.uk'),
'password_changeable'=>false,
'password_encoding'=>'ad',
'attributes'=>array(
'username'=>'sAMAccountName',
'nickname'=>'sAMAccountName',
'email'=>'mail',
'fullname'=>'displayName',
'password'=>'unicodePwd')
));