Thanks for the replies guys.
@vulfox - I'm still not getting any Apache errors locally. I tried adding a user manually in the DB but could sort out the password and the local version will not send emails out with reset passwords.
@Tomo - I'm not using MAMP - I use the standard Apache within OS X which I think is actually PHP 5.5.x
Thanks for all your help with this guys. I'm going to stop checking it out for now as the client I was going to use it for has gone with a different option. We were going to use it as a content population system on html wireframes.
Keep up the good work, I look forward to see where Instant Update goes.