OK So I have Windows 7 and have followed the instruction which allow me to save the game however....

The sound still occasionally glitches.

In addition to this the game (visuals and sound) crash after 2 seconds on each cut scene and can only be fixed by skipping them [using the "p" button].
However this does not happen in the Angela Graveyard cut scene and the opening ones. Though I have not got too far so it may just be the 'radio discovery' cut scenes.

Anyway can anyone help ?

You need to run the game on 1 core on your processor. Open the game & wait until it gets to the menu screen. Hold ctrl + alt + del buttons to minimize game & bring up task manager. You might need to click "show processes from all users", right click sh2pc.exe & click "set affinity". Uncheck all boxes except one. Bring the game back up & play. There is also a patch for the North American version of the game, but running the game on one core seems to fix all the problems.

Works brilliant now a huge thank you.

A permanent solution would be

Simply right click your silent hill 2 shortcut, at the target, enter:
C:\Windows\System32\cmd.exe /c start "" /affinity 1 "D:\Games\Silent Hill\Silent Hill 2 Directors Cut\sh2pc.exe"