Is the wheel seated in the dropout squarely ?
I'm not even sure what that means

Its pretty frustrating not knowing much about this stuff because it does leave you open to be fobbed off and i'm not sure I trust
Halfords after what i've read on this site

.
Anyway, my friend took it back to them today (unfortunately I couldn't accompany her) but they basically said "yeah it will rub a bit"

, they pushed the plastic protector around a bit (so it would seem they agree that is whats causing the rubbing noise), didn't replace remove or repair it - and declared that the rubbing would not be a problem because it wasn't stopping the wheel (looked like it was to me - and won't it make pedalling harder work if thats rubbing on the cogs when the wheel is turning?) As for the gearing problems apparently they tightened up a few things and said "if we change one of them we'll have to change them all" whatever that means so they didn't do anything about the bad gear shifting- its still bad. I know ranting on here isn't going to fix this bike but it does make me feel better!

Thanks all for the help, i'll go up with her next time and throw some of those phrases around, see what happens!