Ok, After getting all the advice on this marvellous forum and being in contact with Matt at 50cycles, I am tentatively reporting the noise problem is fixed.
I found upon getting the wheel out (finally!) that the metal backing plate for the mudguard the paint on one end it is down to bare metal where something, either the tyre or mud carried around on the tyre has worn it away. I am not convinced it is the tyre rubbing, as although it is much closer to the guard than I would like, it is not that close. I am not convinced this was why the noise was there for the same reasons.
I think it is a simple matter of not being aligned perfectly.
So now I had to get the wheel back in! I spent ages getting the wheel in alignment with tape measures, bits of wood sellotaped to the frame at equal distances and shear luck. The chain is a little on the slack side. I can move it up and down approx 5/8" and although it should be only 1/2" it seems ok, it does not droop under its own weight or wobble side to side excessively. To be honest I was so frustrated tightening and loosening the nuts when it finally stayed perfectly central it was shear relief. Getting the gears reconnected is a frustrating faff. I am going to have to add a 2mm allen key and a pair of grips to my roadside puncture repair kit!
I have ridden up the hill outside my house in every gear without power on and the same with power. No noise!
I phoned Matt to update him and he gave me some additional tips for getting the right tension in the chain whilst tightening the cap nuts. Nice chap and very helpful.
To be fair to 50Cycles, one of their guys was on his way to Manchester for something and offered to come take a look and if it was indeed a problem with the hub, take it back to the shop and fix it for me. Thankfully that wont have to happen now.
I find hub gears to be awkward and an excessive amount of faffing is needed to simply change a tyre or mend a puncture. I am used to derailleurs where all you need is to make sure the wheel is central and Bob's your uncle.
Please do not take my problems as a reflection upon 50Cycles. When things go wrong they do their best to fix things. The original problem could have been something as simple as a nut not being at the correct tightness and my riding over a bump knocking it out of perfect alignment.
I stand by my thoughts on the poorness of the documentation by Kalkhoff though from my other thread, but this is certainly not 50Cycles fault. Maybe I should write to the boss of Kalkhoff and poke him with a pointy stick?