So I uninstalled the 2 kernel 3.4 entries from synaptic and reinstalled the 1st one with the upgrade for the 2nd.;

Once it was finished I got the same message;
...
Error: Can't have overlapping partitions.
Error: Can't have overlapping partitions.
mkinitrd failed:
(mkinitrd -f /boot/initrd-3.4.11-pclos1.bfs.img 3.4.11-pclos1.bfs) at /usr/lib/libDrakX/bootloader.pm line 124.
Now if you think that I am wasting your time I can probably wait a few more months for the next release (although I have used PCLinuxOS a lot over the last 5 years or so and have always liked it, especially this new one with KDE4.)
Here is a thought first of all do you think my sound problem is KDE related? What if I installed the Gnome desktop and see if I get the sound working or am I going in the wrong direction?
P.S. Here is the entry in for the lines 122 to 125 in /usr/lib/libDrakX/bootloader.pm;
if (!run_program::rooted($::prefix, 'mkinitrd', @options)) {
unlink("$::prefix/$initrd");
die "mkinitrd failed:\n(mkinitrd @options)";
}
A single kernel installation always consists of two packages, the kernel package and the kernel-devel package having the same version number as the kernel package in question.
Partitions have certain numbers, 1-4 reserved for primary partitions. They should be used first. If one needs more than 4 partitions, the, fourth primary partition should be created as an extended partition, which acts as a container for all logical partitions from 5 to however many will fit on the drive. Because of deficiencies in their partitioning scheme and how partitions are displayed as separate lettered drives, (C: D: E: etc) Microsoft chose to make the second primary partition the extended one, and as most Linux installations were as dual boot installations with Windows, some of the Linux partitioning tools followed suit, using the Windows partitioning scheme. Other tools, like Linux fdisk, did not choose to default to the Windows scheme, so allow completely proper partitioning, using all primary partitions available before creating any logical partitions.
If the first three primary partitions are created as normal partitions, and the fourth partition is created as an extended partition covering the whole of the remainder of the hard drive, all additional partitions will be logical, as that is the only remaining choice. If all the primary partitions are not initially used, one gets set-up for the kind of partitioning error that you are experiencing. One of the tools you used created a primary partition in the middle of your extended partition, because it could; because the partition number 4 wasn't already in use.
What you need to do now is delete the primary partition number 4, then recreate it as a logical partition, using the same start and end sectors. That also means that all the rest of the logical partitions need to have their assigned numbers brought into line with their physical position on the hard drive, which in turn means all files that refer to them need to be updated to address each with its new number assignment. Until this is done, and any other errors corrected, mkinitrd will fail to build a proper initrd for the kernel being installed and the installation will fail.
You need to fix your partitions before you can proceed with anything else.