Where is the auto recover information being stored? Does that directory exist on your computer? There is an option to go into the registry and turn it on by editing the registry key.
I went into options to check where it was pointed, and now it seems to be enabled and not greyed out. So now I'm puzzled. This time I didn't have any files open, I can't remember if I had any files open previously, so long story short, the problem has gone away and I don't know why.
Thanks for your response