For anyone who might be reading these e-mails some time down the track, here is 
the solution I finally came up with

begin authenticators

plain_login:
        driver = plaintext
        public_name = PLAIN
        client_send = ^username^password
        server_prompts = Username:: : Password::
        server_advertise_condition = ${if eq{$tls_cipher}{}{no}{yes}}
        server_condition = ${lookup{$1}lsearch{/etc/exim/passwd.client}{${if eq 
{$value }{$2}{yes}{no}}}}{no}}
        server_set_id = $1

However for the LOGIN authenticator use:
    client_send  = : username : password

Thanks for everyones help it was much appreciated
de Chris G

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