Ok, solution found !,

We needed to call 'openquery' to do the insert, the following code is an example of how it was done;

insert openquery(SERVERNAME, 'select field_1,field_2, field_3 from tablename')

values (getdate(),'FINISHED', 'sql')

This appears to work ok, with Sybase generating the Identity value as per any normal insert into the Sybase Db, returning no errors to SqlServer.

Regards.

j