Thanx Alexander
Just to be safe, you could also check the rest of the dig output and /etc/resolv.conf (or relevant resolver configuration on your system) to make sure your BIND is being used. The flags look fine, though.
resolv.conf only has 127.0.0.1 and Dig responds from 127.0.0.1 - Caching works as well.
I'll update the rest of my exits now.
Thanx All
Paul