Many thanks to Sergey for his excellent guides to Galileo! A star you most definitely are!
For anyone embarking on the local build of Yocto, there are a couple of GOTCHA's in the build, seems that an old version of source for ELF is on the GIT repository, this will lead to build errors and requires edits to 2 of the source files replacing "%a" with "%m" in 2 places in the first failing file, and, once in the second failing file. I apologise for not recording the names, but, when it fails you will get all the information you need!
The other major fail is in the module GUILE, I tried to sort the local source but gave up and downloaded the latest source from repository and it all built in the end.
It is a long time since I messed about with these things, (1990's), I thought that modern CVS had cracked all of these issues many years ago! Nope! Seems that the GIGO and Linux are still very much alive!
Do not apply the update to Ubuntu is the solution for my problem! This only works with Ubuntu 12.04.