Well, I am am sure why and how this works, but, more then happy to share, I hope it will not make me sound to dumb! :P

In Corel Draw I selected the image, converted to bitmap, went to trace and then pasted in new item, then ungrouped. This got rid the of the blob box. Why I had to do this, I am not sure, as the item was a .bmp image to start with and on the screen looked fine.

I think this was something over my head, but, for whatever reason, this worked and the job is done and gone! The customer was very happy with it. :>

One tip, I didn't know until this, if you print the job on your printer first, you can see that the image is a blob and not correct, before engraving and learning the hard way. Now what all the reasoning was, no idea! :S