Hi guys,
I've taken the damaged gearbox out and, as I said I would earlier, have stripped it down and taken pictures of the damage and the offending part.
Turned out to be the main shaft bearing that failed throwing lots of debris and ball bearings into the diff housing.
As you will see in one of the pictures it was one of these ball bearings that broke through the casing.
I hope this will help someone else diagnose their problems in the future, although I wouldn't wish it on anyone.
I managed to get a recon gearbox with a 1 year warranty from "The Punto Shop" in Oldham. ("oldhamfiatgearboxes" on eBay)
Thanks again for all the help and suggestions.
Knowing my 18yr old son as I do, I'll no doubt be back asking for more advice again soon.