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@sleve_mcdichael I'm an idiot, no I didn't! Got it working now and it compressed the.img perfectly. I installed it onto the 16gb card, booted up and it all works!
Thanks a lot everyone, couldn't have done it without the help received!
@mitu
Thanks I actually ended up abandoning the Pi as a media straming box idea so lookign at a dedicated retropie rig now :)
@simonster I had totally forgotten that I used a USB to transfer the last time and not the SD card. This should fix the problem. Thank you!
Sounds good! I'll have to try it.