Work wise things are going well, but I really don't get on well with my PhD supervisor and I don't particularly like the lab environment (Bit too stiff and reserved for my liking!). So firstly, how employable is someone with an MSc and an MPhil? Secondly does it look bad applying for another PhD after dropping out during the first year?

Dear Matt, your relationship with your supervisor is the most important thing if you are going to be successful. If you feel it is not going to improve you can consider quit now. Employability depends on the type of subject your research is and the kind of employment you want. But an MSC or Mphil in itself is a well recognised postgraduate qualification, it will ceratinly mark you out from graduates if a postgraduate experience is what is needed.

You don't even need to say that you were doing a PhD should you choose to take the M.Phil. I myself undertook an M.Phil especially for that degree and have left my options open for the future should i wish to undertake the PhD - if anything it should stand me in good stead for a PhD