Guys - Major break through. Went back to my car dealer as Nissan was hesitant in diagnosing the car. They have very little knowledge about cars in my opinion. If the service manual doesn't state it, they don't know about it. No thinking out of the box.
Anyway, enough of my rants. At the dealer's, we pulled out the Exhaust valve timing control magnet retarder' harness connectors - there are 2 right in the front of the engine. They are conencted to blue plastic holders. We then started the car with the plugs pull out. It ,runs a dream, swapped both front the covers with a 370GT but problem persists with the connectors re-plugged in. When connectors removed, problem vanishes again. Called a different Nissan branch, they said this will be a timing issue, they will remove timing chain and check for any expansion etc and redo timing - didn't say what. Will send to Nissan next Tuesday.
See illustration of plugs here: https://drive.google.com/file/d/0Bxy5VF8M4iZ7X3ZiRDUtR2lrNXc/edit?usp=sharing
So if you want to confirm if your problem is the same, unplug the connectors and check. But please remember - this is at your own risk.
Cheers guys, will be very interested to hear how it went your end.