Sorted - see attachment for settings (though I couldn't preview it within the msg thread, so adding attachments to msgs may not work)
CCS console setting are a red herring. The local connection has to be set to USBTap, and the Jtag clock has to be 500kHz, not the 8000 factory default. And these setttings are per project.
Error msgs are misleading e.g. "CCS libary not found" in response to a lack of target power. "unable to open USB port" seems to mean "Jtag not responding, but USB is fine".
I would have returned this product as unsaleable had it not been for the support by the FAE's. I understand that it is causing them a lot of calls!
p.s. this is the 2nd time that I've typed this - if you use the preview button, and try to come back to the original edit, you lose what you've typed. Not very clever.