Thanks a lot for the replies...

I've looked into this and Travelocity and their 'helpful' indian based call centre are hindering me. I have an email from them basically saying that they can refund the ticket, issue me another one at exactly the same price minus £45 admin fee. I'm happy to do this. However speaking to them on the phone today they say i'll have to buy the new ticket at the current rate (This is twice what i paid for it two days ago!) bringing the tickets from £670 to £1300!!

So should travelocity be unhelpful still....this is my thought process. I'm unwilling to pay double so think I would take a chance. This is where I see potential hurdles..

When checking in in the UK, staff issue my tickets and will confirm flyer/passport. I think they shouldn't see an issue as most people would know that Terry is short for Terrence. That'll get me to Beijing. Then I presume immigration will just look at passports/visas so there would be no issue with the misspelt ticket there. Obviously I may get the same hurdles on the way back.

I've looked into an alteration on the passport doesn't seem possible too. And yeah you're right, KLM don't like to answer the phone to peasents like myself.