OK!
Managed to mount windows share from command line.
Moved one of the root/var/spool/squid/ folders to the windows share.
It moaned about maintaining the permissions, something about operation not permitted.
Anyway, this finally made some space on /.
rpm the xfs rpm... ok!
Tried xinit and startx and got same old error messages.
Doh!
Tried starting xfs and it sort of hung with !warning.
Started to think this was a no hoper.
Shutdown -r...
oops forgot to unmount windows share first - box hangs on shutdown.
Hit power switch on box to turn it off.
Count to ten.
Hit power switch on box to turn it back on.
I really thought it was still gonna be screwed up.
Bingo... GUI is back again.
Me... happy again!

1. I still wanna know if I can move / delete all those folders in root/var/spool/squid/ ok???
Most of them are date of crash do I figure they can go.
Two of them are 5 years old so they can go?

2. Likewise, can I delete swap.state? Will linux rebuild it?
I guess I should leave it the hell alone and be happy it works but it is still currently rather low on disk space and I guess the backup will be big until I move the rest of the folders.
THANKS for your help guys!
Cheers Tom!
G'night!