Okay, like most I've read through as much as is humanly possible on this before posting.
Here's what's happening:
1. wordpress mu set up and running fine on wp.domain1.com
2. blogs then running on blog1.wp.domain1.com, blog2.wp.domain1.com etc.
3. domain mapping plugin installed using CNAME
4. domain2.com has name servers as the same as domain1.com
5. domain2.com has a CNAME pointing it to blog2.wp.domain1.com
All seems to work fine other than domain2.com loads the VPS's default vhost (I haven't set one up for it as it's supposed to redirect to blog2.wp.domain1.com)
I also tried it with an A record with no luck either.
Any tips on what might be going wrong????