Found out what the issue was, solution below
To install and configure WebDAV for IIS 7.0 to support management point and BITS-enabled distribution point site system computers
1. Depending on your server operating system platform, download either the x86 or x64 version of WebDAV from:
http://go.microsoft.com/fwlink/?LinkId=108052.
2. Depending on which version was downloaded, run either the webdav_x86_rtw.msi or the webdav_x64_rtw.msi file to install WebDAV IIS 7.0 extensions.
3. Enable WebDAV and create an Authoring Rule, as follows:
a. Navigate to Start / All Programs / Administrative Tools / Internet Information Services (IIS) Manager to start Internet Information Services 7 Application Server Manager.
b. In the Connections pane, expand the Sites node in the navigation tree, and then click Default Web Site if you are using the default Web site for the site system or SMSWEB if you are using a custom Web site for the site system.
c. In the Features View, double-click WebDAV Authoring Rules.
d. When the WebDAV Authoring Rules page is displayed, in the Actions pane, click Enable WebDAV.
e. After WebDAV has been enabled, in the Actions pane, click Add Authoring Rule.
f. In the Add Authoring Rule dialog box, under Allow access to, click All content.
g. Under Allow access to this content to, click All users.
h. Under Permissions, click Read, and then click OK.
4. Change the property behavior as follows:
a. In the WebDAV Authoring Rules page, in the Actions pane, click WebDAV Settings.
b. In the WebDAV Settings page, under Property Behavior, set Allow anonymous property queries to True.
c. Set Allow Custom Properties to False.
d. Set Allow property queries with infinite depth to True.
e. If this is a BITS-enabled distribution point, under WebDAV Behavior, set Allow hidden files to be listed to True.
f. In the Action pane, click Apply.
5. Close Internet Information Services (IIS) Manager.
Also, the WebDAV _schema needs manually amending
C:\Windows\System32\inetsr
v\config\s
chema\WEBD
AV_schema.
xml file. The following parameters were changed:
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
<element name="properties">
<attribute name="allowAnonymousPropfi
nd" type="bool" defaultValue="true" />
<attribute name="allowInfinitePropfin
dDepth" type="bool" defaultValue="true" />
<attribute name="allowCustomPropertie
s" type="bool" defaultValue="false" />
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