That was indeed the case. It is now set to On, apache restarted and I can now log in to Aegir no problem. (Banging head on desk for not figuring this one out myself.)
Many many thanks all of you for helping me trouble shoot this one. It might be something to stick in a FAQ in big red letters perhaps, as it appears a few people do run into this one.
Actually I don't think any of the Midgard admin sites actually work without register_globals, those that use basic authentication can indeed authenticate but editing/creation will not work.
I remember seeing at sometime somewhere that this should be one of the first things to check, but we all forget at times...
/Rambo
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