Just wanted to update everyone on what happened.
I found that I was hitting the ulimit, which was set very low to 256.
I tried to set that higher but found it was being ignored. I then found its an issue with Solaris stdio.h and limiting to 256 descriptors.
To work around, I modified the bacula startup scripts to set the ulimit and set and ENV variable to overcome the stdio.h limitation
Thanks
Shon