This turned out to be intrusion detection and prevention, Protect the network from malicious rogue access points was putting the new AP into disconnected.
Okay worked out what I was doing wrong, need to update/refresh firmware to get back to fresh install. This allowed me to update to latest firmware thinking that may solve my initial problem. Still have the original problem which is the new AP is not ...
I have the same problem (have 5 r600's), I can reset the password but I can't get it to reset so I can make it a master or try and reconnect to the master (failed to connect to the existing master). Not sure what to do next.