Isn't the internet wonderful? After a post about my problems with renaming the links on my blogroll to fit my preferred "house style", within an hour Kevin had been along and pointed me in the direction of Tom's post on his Waiouru blog. with a method of getting around the bug.
Following Tom's instructions and having used Google Reader to ensure I was "subscribed" to all the blogs I wanted on the roll I then renamed them. Tom doesn't tell you how to do this - he probably thinks it's so obvious he doesn't need to - but for the other dummies out there, you go to "Feed Settings" and then "rename subscription".
Tom then says you should go to your Blogger template and delete all the names on your existing blogroll replacing them by adding "Blogs I am following". But I didn't need to do this as it seemed to have imported them, with my preferred names, automatically! Ironically, the only one it didn't add was Waiouru itself, but when I went back and added that in Reader it appeared as I wanted it on the roll!
So thanks, Kevin and Tom - and also Sue who confirmed it works for her too.
All we need to do now is find a way round Blogger's awful new interface when they switch the old one off!