Thanks. I decided to do a factory reset. I can confirm that this has resolved all my cut n past issues. I can now successfully cut n past in crome, emails, colour notes, Handcent sms - everything. It has also resolved my mysterious Testservice message crashes which I was receiving on occasions. The process was straight forward, all my apps were automatically download and installed as they were all connected to my Google account. Just to be on the safe side I copied any pictures and important items off my internal sd card to my external sd card, and and then removed it for good measure before doing a factory reset. Phone is working wonderfully.
Note that customised setting within apps will need to be redone, and again this was a doddle. Hope This helps others.