Not using any private addresses.
No luck with Google IP address.
Tried iMac Airport DNS server = iMac Ethernet IP address
No luck.
Changed the IPv4 config on the MacBook to 'Using DHCP', still no luck, can't even ping from terminal.
In Finder, I can see the MacBeauty but cannot connect - I also have File sharing setup.
Going to update to 10.5.6 and try again.
EDIT : SOLVED - firewall on the iMac had 'Allow only essential services', I changed it to Allow all incoming connections and it worked.
Now I presume that I'm less secure on that thar intarweb.
Not sure that I like leaving this as it is.