Okay - got a little closer.
layman -s sabayon wouldn't run - so I had to equo install layman - it still died once it tried to update the signature database, but at least it installed... I think.
After the equo - I received: http://pastebin.com/f5eb19c31
So, I 'emerge layman' and it timed out on the server, so I brute force remove and re-add sabayon (layman -d sabayon && layman -a sabayon), which was successful (no errors)
"emerge entropy equo" ran - no angry errors ( http://pastebin.com/f444624a2
"equo update" then ran unhappily - bug reported - see pastebin ( http://pastebin.com/f1951b2ec
Okay - dinner for now - I will bash more later.