[eluser]thomasz[/eluser]
RESOLVED!
Thanks for the help. At your suggestion I tried a clean install and it didn't resolve the issue. The clean site worked but as I layered back in my site (configs, helpers, libraries, controllers, etc) it quickly broke again.
This led to more experimentation that eventually led to the revelation ... APC! I disabled APC and the site started working. Re-enabled and it broke again. Now I was on to something.
Next I looked at the apc.ini file I was using. This is an exact match of my production site.
extension=apc.so
apc.enabled=1
apc.include_once_override = 2
apc.mmap_file_mask = /tmp/apc.XXXXXX
apc.ttl=7200
apc.user_ttl=7200
apc.shm_size=20M
However my test server was only using the first line. So I commented out the other lines and it worked! Now here's the weird part. I then re-enabled each line (with a corresponding apache restart) and it still worked. I am nowt running again in the original configuration (with all the above lines enabled and everything works! I've even manually cleared the opcode cache and it's still all working.
I am happy it's working but disappointed that it appears to be an anomaly.