Changed it slightly and EPS files work again. :D
The problem was I had two spot colours Cutcontour & Variable Text tacked onto the end of my Customised CMYK Default Palette.
Link to Faulty Palette for Tech Support.
https://dl.dropboxusercontent.com/u/24906315/CW%20X8%20New%20Palette.zip
This is the reason I am NOT AN ADVOCATE of significantly customized work spaces and other custom features. Many times problems are traced back to this, I run a very bland near default work space. Custom palettes have over the last 25 years been one of those sources of problems.