Thanks for your explanation Alan, I think the reason I cannot get it working is because I'm unsure about the 'Connection editor' in Hypershade.
I made my block Ok and did the text just as you said, [Although when saving I did notice that the area in P/Shop where you give the quality settings etc - There at the bottom - the "Alpha Channels" was greyed out..? I'm not sure if this is a problem, or it's supposed to be like that, I just mention it because I have had problems but that should be sorted out now. (That was Targa files, and I got a patch to sort it out)

Anyway after making sure my 'tiff' file actually showed up on the poly with just a normal texture procedure. (It did do OK)
I set about working out how to do it with displacement, I have posted a picture as that's how I thought it should go and I wanted to get the "Out Colour" of the Blinn to the Input of the displacement map, apply it to material and hey presto......

But that darn (Connection Editor) I have never manually made a connection work ever! I cannot find out how to connect it up?
Can you help me connect them? - Or re-make my Hypershade in case I have done that wrong.?
I even tried getting rid of the Blinn and putting the "displacement node" onto the cube - but that didn't work either .

I'm stuck, Regards Scraggy