After hard resetting my SGS and making contact with KIES I re-installed software and go tthe same problem.
Turns out that ADW Launcher buggers it up.
Another problem -
KIES now won't let me upgrade.
Model name: GT-I9000
Current Version : PDA:JM1 / Phone:JM1
This devices version cannot be updated
The reason it wasn't working is that the phone won't connect to Kies properly unless you're using TwLauncher (i.e. not ADW or LauncherPro).
Take a look at this. Let's you fool Kies into upgrading pretty much anything.
Before you upgrade, make a copy of your efs folder and put it somewhere safe, and make sure you have the 3-button recovery/download modes available.