Success! Well sort of. Had a look at the Park tools How To.......whatever and;
1. Checked the salient points over. Nothing remiss on the bike.
2. Changed the chain to an eight speed. Probably not necessary, but at least three out of four components are eight speed now.
2. Adjusted the H & L settings on the rear derailleur. These were way out (what did the bike shop do?)
3. Adjusted the D setting which was fine.
4. Gears still all over the place. Checked the indexing and it's not there.
5. Big discovery of the night, checked the change from smallest cog to next largest and it wouldn't jump. Checked the derailleur cable and it was loose. Not major, but very slightly. Tightened this up, reversed the derailleur adjustment nut by two full revolutions.
6. Indexed the gears and voila! It all works.
Except when I switched gears on the front derailleur on the way to work this morning and the chain fell off. So, need to adjust this as well, probably because of the new chain.