Spoke (pun not intended) to LBS and we may have come to a mutually acceptable solution......
He is willing to send the wheel back to Giant but said be ready to have warranty rejected do to the weather I've ridden it in (extremely wet winter all winter - still not sure that would be classed as fit for purpose though) at which Giant/LBS would charge me the carriage of £15.... then I would have to go to trading standards to question their decision etc........
However as a compromise he is willing to fit a new (black to almost match the front one) Shimano hub and freewheel at the cost price of part to him with no labour which is then serviceable in the future.... This option is only twice what the carriage charge would be and the problem can be cured relatively cheaply should the situation arise again in the future.....and nobody falls out over it
(it's handy having a friendly LBS over the road at work literally a 100 yards away and I don't want to have boycott them due to mutual ill feeling)
The only problem may be spoke length if he has to fit new spokes this will add to the cost and not make it economically viable in which case I may rethink the situation....
He has taken the bike (not just the wheel) this time to double check his mechanics diagnosis of the noise (pretty certain it is the fault but going to ride the bike to make sure)
But if this all works out as above..... I might then save up for some nice new shiny (okay matt black but you know what I mean) Summer wheels
I reckon if it can be sorted as cheap as he says then I reckon its an 'okay' outcome (not fantastic but acceptable and a lot less hassle than arguing over it with Giant and LBS) what do you all think?