Thanks all for your responses. I just did a quick upgrade to v1.1.4 as I had this readily on my hard drive and it appears to be working just fine now.
I've also made the necessary adjustments to the unified-prefix and box-allow-ip lists and enabled the bearer box access log. As I'm intending only to run kannel as an SMS gateway for our main web based applications, is there any real need for me to use a more recent version? What relevant fixes/updates have been incorporated? I'm also intending to use a Siemens M20 Terminal as a virtual SMSC until such time it will be necessary to connect via tcp/ip to a true SMSC. Are there any gotchas to this? Will it simply be a matter of configuring the relevant smsc-connections into the kannel.conf file? Thanks again, Dave