The problem was due to the fact that oflaDemo was install via a folder copy.
I read recently in the manual (and on http://red5guide.com/) that applications are normally loaded via a war file being dropped into the webapps folder. After 10 minutes the application would be installed.
So after googling I came across a copy of ofla demo war file : http://red5.googlecode.com/svn-history/r3990/snapshots/oflaDemo-r3989-java6.war
I dropped this into webapps after deleting the old oflademo folder structure and restarting the red5 service - it didn't create a new one so I check the red 5 logs and found a comment saying it thought oflademo was already loaded so I search the folder structure and found reference to oflademo in red5/work/red5engine (just a folder) and deleted this.
Oflademo then, in time, installed itself from the war file.
http://[ my server ip]:5080/demos/ofla_demo.html then ran correctly - played some example videos and accepted rtmp stream connection (and remote Flash uploads) to url rtmp://[my server ip]/oflaDemo.
This is the default properties (file red5-web.properties) that seem to work without any reference to the local ip address of that server.
webapp.contextPath=/oflaDemo webapp.virtualHosts=*, localhost, localhost:8088, 127.0.0.1:8088