Hi thanks for your reply I tried this last night and removed the used nic's which where greyed out as I read this on a VMware KB article. This did not seem to make a difference even with a reboot after.
If there anywhere else where the old IP might be held in the VM? Tonight I am going to test by isolating the network to make sure that its not a switch issue. I will try pinging VM's which are on the same vSwitch.