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All sorted, part of what DM had to say to me;

" I have looked into this situation for you this morning and I have been talking extensively with Nominet about why this occurred. The domain xxxxxx.co.uk was on a 'conflict list' at Nominet and any domains which are on this are manually allocated by Nominet. However Nominet do not provide registrars with information about which domains are on this list.

When this domain dropped there were multiple requests to register this domain, including the register request we sent to Nominet when you placed the order. My contact at Nominet informed me that there were well over 50 requests made in a short space of time for this domain and he allocated the domain on a first come, first served basis. Unfortunately others (probably back ordering services) caught this domain first which is why we can't allocate it to you. Nominet informed me the reason we were still able to send register requests for this domain is because until they manually allocate it their system still shows the domain as available"
 
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