Well I don't know what happened but it went Pete Tong.
I gave up and carefully cut all the lining out then relined it using anthracite camper van lining off ebay, which it turns out seems to be an exact match for the hood well lining but is flexible, this maybe useful later for something I have in mind.
I have not done the lip under the boot lid yet as I need to check that the added thickness wont stress the lid or hinges, the only drawback I've found is the velcro strips on the hood irons, the material sticks like the proverbial to the velcro hooks. I solved this by using offcuts of the material to "blind" any velcro hooks that might cause a problem.