Well i got it working.
I shall explain how.
I found the fix here:
http://bugs.mysql.com/bug.php?id=53232 (in the comments)
also here
http://bugs.mysql.com/bug.php?id=55530
But it took me a while to understand so i try to explain it easier.
Open Terminal and enter the following:
sudo nano /usr/local/mysql/support-files/mysql.server
This will open up the mysql.server file used to start up MySQL.
Then press ctrl + W to search for type in 'basedir=.' (with out the quotes)
Once you have found this line change it from:
basedir=.
To
basedir=/usr/local/mysql
Next search for 'mysqld_pid_file_path=$datadir/`hostname`.pid' (with out the quotes)
Again change it from:
mysqld_pid_file_path=$datadir/`hostname`.pid
To
mysqld_pid_file_path=$datadir/`/bin/hostname`.pid
Thats all the changes you need to make press ctrl + X and save the changes.
You might want to restart you computer for the effects to take places.
I then got a problem with MySQL not wanting to start up automatically but i fixed this here:
http://discussions.apple.com/thread.jspa?messageID=12796285
sudo chown -R root:wheel /Library/StartupItems/MySQLCOM
(although i cannot now turn it off but thats not such a big problem)
Hope this helps anyone out there with this problem. Sorry that it is a little long :P