Ok so i've gone down the Correos route and the requirements are as follows:
Take you recidencia and original NIE
Pay the 29.90e fee
Give them a phone number (no idea why)
Give them your car registration details (no idea why as you may not have a car, maybe a security test with trafico?)
Sign the electronic pad.
That's it!. I was amazed. They gave me a printed temporary license and receipt and told me the replacement would arrive in the mail. No idea when but i'm hoping it turns up before the temporary licence runs out.
So all in all a very efficient (touch wood) service. Saves a lot of hassle messing around with denuncias and travelling to Elche etc. I am quite impressed. Normally things are a mission.
Thanks Jim for your assistance. Without it i would of had no idea the Correos route was a option.