Found the problem
Ok after sleeping on it and looking at it with fresh eyes I have found my mistake
postconf -e 'smtpd_sasl_local_domain ='
postconf -e 'smtpd_sasl_auth_enable = yes'
postconf -e 'smtpd_sasl_security_options = noanonymous'
postconf -e 'broken_sasl_auth_clients = yes'
postconf -e 'smtpd_recipient_restrictions = permit_sasl_authenticated,permit_mynetworks,reject _unauth_destination'
postconf -e 'inet_interfaces = all'
echo 'pwcheck_method: saslauthd' >> /etc/postfix/sasl/smtpd.conf
echo 'mech_list: plain login' >> /etc/postfix/sasl/smtpd.conf
the above is an extract taken from the Debian 4 perfect setup guide, on the webpage/website the font is not the best one as the "w" in pwcheck looks like a "v".
Perhaps a change of font could be a better option for future guides or perhaps I need a pair of glasses.