OK apparently file_exists:
"This function returns FALSE for files inaccessible due to safe mode restrictions. However these files still can be included if they are located in safe_mode_include_dir. "
But not sure I can do much about that with a Windows host account so editted the script and threw out the file_exists statement because I know for sure that my templates are in place. So not ideal but at least the thing is working now! Phew!
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