Warren, thanks for the advise.
I got the tunnel working using a single subnet for both sides of the tunnel, this was on IOS 11.1(24). I could not get the cisco example to work though, I upgraded to IOS 12.0(22) and only then did the cisco example work. So it looks like it is very much dependent on the IOS version.
I still dont really understand the example as it does not make sense to me.
Next step is to get a CLNS tunnel working.
Where you originally from Warren ?
Thanks
Reon