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Right ok...
Was on support ticket all yesterday with cPanel... think got it fixed.
It appears that some how the password algo for the server was changed from Md5 to DES so some passwords saved as md5 (presumably those which havent been changed in a while/since algo change)
So I was instructed to change algo via command line and re-changed the users password so saved as md5.
It appears the problem was because DES only allows a set number of characters and anything extra is ignored so when my client changed his password to something he was just changing the last few chars meaning the first x letters were the same.
Now been corrected so hopefully wont have the issue again, was certainly a mind boggler. lol
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