Hi Ali,
You've pointed me in the right direction.
My problem was that the base layer which I was using was in WGS84 projection (ESRI_StreetMap_World_2D,4326) and my service was in web mercator (102113).
When I switched my base map to Worrld_Street_Map (Web Mercator Auxilary - 10211), the graphics rendered.
It's a bit odd that my dynamicMapServiceLayer will render over the WGS84 Map, but create a graphicsLayer from this dynamicService and the graphics won't renender.
Anyhow, your transparent symbology xaml code works a treat!
Thanks again.
Mike