right i have got it to work again
i made a copy of the image/iso of the disk.
burnt it to another disk,
copied the entire content into a new folder.
made the install and resident evil exe in compatability mode
with 95
installed from that install to a different directory to the default.
and all was well again:)
Im not sure what out of this was nessisary but i thought i would share.
I also found from another forum a way past the hang after the first zombie with jill.
when you first enter the dining room, try to leave out of the door you just came in, weskar will tell you to investigate if you hear gunfire, try again and barry calls you a coward, then after you have spoke to barry about the blood stain run past the clock and you will get a different cutscene which doesnt hang. (im think you do lose out on some ammo from kenneth's remains)
I hope this is of use have fun