Okay, so did a reinstallation to no avail. Didn't work at all in any way when reinstalled so after a bit of a think I decided that it must be a power problem as the chip wouldn't even boot ps1 backups ( acts like it ain't there) so opened up again and changed the 3.4V wire for a different thinner single core wire.
The ps2 booted up a ps2 dvd backup perfectly the first time but on a reset it ignored the chip again. Switchin off ( completely) an then powering up again did no good either. Ignores the chip.
I'm wondering if I damaged the supply to the m2 area on the motherboard an if so is it possible to use an alternative point on the motherboard to get a supply from e.g from the 3.5V ntsc fix point?
Other than that am gonna try fitting the m2 chip into a m8's version 7 just to ensure that the chip ain't a duff one.
Any ideas anyone?