Hi Guys,
Thank you all for your help and here'sw the info about versions etc.
I'm running 19.2.1/2015.2.1 on an iMac27-inch late 2012 running 10.10.5 Yosemite.
Here is the original file where the illustration is being taken from:
WeTransfer
Here is the re-worked files using the the grouped vector which illustrator then decides to turn into a lo-res jpeg. Funnily the master doc where the file is taken from doesn't do this lo-res stuff and stays in-tact.
WeTransfer
Information within the files in copyrighted and not to be used for commercial means.
Thanks for your help.
Best
The one with the image is saved as Illustrator CS5.
Try to save the Master Illustration as CS5, you will get warnings about spot colors and transparency (unless you turned off the warnings) the result, when reopened will give you an image.
So don't just do a save, but make sure that you are saving as the latest version of the Illustrator file format.