Hi - thanks for the response. I can't get things to work as you mention so i must be doing something wrong.
Here are some screen shots if you can see what is going wrong.
First of all here are the AD account details i have been given.
512 - normal account
514 - disabled account
66048 - normal account with non-expiring password
66050 - disabled account with non-expiring password
2080 - inter-domain trust account, password not required
I then run a sync which appears successfull
I still have all the inactive users included