After leaving spine alone for a while I come back to this:
http://i.imgur.com/jWlScEG.png
I closed spine and re-opened it and things went back to normal:
http://i.imgur.com/kA0Ul6R.png
its almost as if spine forgot where the images were after being idle for some time.
Here is my asset folder structure which might be slightly different from the norm:
http://i.imgur.com/zMLCyyq.png
Not a bad bug but figured I would let you know anyway
Cheers,
Brian