I felt the big pipe CH flow ? on the outside of the boiler going I presume to the radiators , although they did not get hot as the CH was isolated. This is what was suggested that I do, to test if the DV was working properly
The CH flow pipe getting hot (when the CH is off and the HW tap is open) is incorrect, and does indicate a faulty DV. If you run the HW tap for a long time (10 mins), the rads will probably start to warm.
It does seem strange, though, that you've had the same issue with your old DV. So unless the ex-BG guy has also supplied a dud, then perhaps the fault is elsewhere?
When you run the HW tap, does the boiler stay lit? (no cutting out)
The thing that seems funny to me is why if the small hot water pipe ( also on the outside of the boiler ( going to the tap is hot ), why isnt the water coming out also hot ?.
The small HW pipe being hot is interesting! How hot? Assuming your HW and CH temperature dials are on max, the HW should be about 65 degrees C, and the CH about 85 degrees C.