Tabs functionality Not Working

Using:
Drupal 6.13
jQuery Ui 1.7.3 (updated using jquery_update)
jQuery 1.3.2
panels 3
tabs panel

I'm creating a simple panel for a site and to get a feel for how panels and tabs can be used together.

I can create a panel and add nodes(views, defined content etc).

Following the docs I've set region style to tabs with equal width option.

When I use any content that is not "New Custom Content" I receive a message like this:

uncaught exception: Syntax error, unrecognized expression: /node/1/edit?destination=test4

This message is a result of using node 1 as a piece of content and the page name is panel I am building is called test4

If I use custom content I get a rendered page but I don't receive tabs - the information just flows vertically with two tab like boxes at the the top. (screenshot 1)

Any help on this would be great as I've spent nearly a day installing/uninstalling/reading docs/trying again and I keep ending up back at this point. Perhaps I am missing something ?...

Nathan