Update (fixed) - relocating the jboss-seam-2.0.0.GA and jboss-4.2.2.GA to C:\ and
regenerating the application from scratch works like a treat.
Of course I had to recreate the server and remap the path to the seam runtimes.
So "root" installs it is (though there seems to be some activity in JIRA on
similar issues -
http://jira.jboss.org/jira/browse/JBIDE-1343)
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