Ok after a lot of messing around and thinking that Bebo was a broken platform I finally go my simple application to work.
I thought that the PHP library I was using was broken so I waited till the new version was released. Alas, it didn’t work either…
I was getting error 101, my application key was invalid.
Time to turn to the forums and I found this post http://developer.bebo.com/forum/viewtopic.php?id=235
My site is hosted on Joyent so I added the code suggested
and everything started working!