I have double posted to make clear the solution should someone have the same issue.
There are two things I have changed to get the npc to interact with players.
The first problem was that the merchant.txt was looking for
02Weapon_Bichon but in mud3\envir\market_def the file was titled
WeponShop-0 meaning they didnt match up. Renaming the file in market_def to 02Weapon_Bichon-0 is necessary or visa versa renaming the file in merchant.txt
The second thing that I am suprised about and would imagine it is possible to work around is that the renamed 02Weapon_Bichon-0 in merchant_def seems to need to be in the main folder and can't be contained in a sub folder for all "bichon" npc's.
anyone can expand on this further or tell me there is an easier way im all ears
FH
Recieved a warning for this, in future i will not share soloutions to problems i come across. /Petty