Running the Loader normal no /nojvm was successfull.
So steps that solved my issue.
1. this website and the ppl that responded. :o)
2. downloading and installing desktop manager and the correct OS
3. have Blackberry disconnected and run loader /nojvm
4. plug in b-berry and select unknown and then next button
5. it failed when b-berry restarted, with 507 error
6. ran loader with no /nojvm and it ran through all steps with no issues.
7. b-berry restarted back to factory settings
I did a restore from last week, so pretty much back to normal.