Update
Well I mamaged it get it going with the following config, so if anyone could enlighten me to as the differences between the vlan-tagging setup and the config below and/or why the below works I would be keen to know why.
interfaces { fe-0/0/1 { unit 0 { family ethernet-switching { port-mode trunk; vlan { members all; } } } } fe-0/0/3 { unit 0 { family ethernet-switching { vlan { members vlan-trust; } } } vlan { unit 16 { family inet { address 192.168.16.1/24; } } unit 101 { family inet { address 10.1.1.1/24; } } } } security { policies { from-zone trust to-zone trust { policy trust-to-trust { match { source-address any; destination-address any; application any; } then { permit; } } } } zones { security-zone trust { host-inbound-traffic { system-services { all; } protocols { all; } } interfaces { vlan.16; } } } } vlans { transit { vlan-id 101; l3-interface vlan.101; } vlan-trust { vlan-id 16; l3-interface vlan.16; } }