I finally worked it out.  I had an extra library folder as a lib entry, so it was trying to link to a folder???  Wierd?  Next I found problems with the sdl libs, because I appeared to have hardware SDL libs and software include files?!?
Anyway, the demo works fine =D  Now to get some proper develoment going  :rolleyes:
EDIT: Many thanks to yaustar!!  I couldn't have got this working without help.  Being from a Delphi background....