Thank you all for the help. I unlocked the phone, here is how for other newbies like me who are clueless as I am...
K700i Phone off, no SIM
Semctool v3.3 cracked used with DSS-20 sync station plugged into usb on pc NOT a hub (doesn't work on my hub).
Match COMs up via Control Panel --> System --> Hardware -->device manager
and start Semctool 3.3 and set it to same COM and DSS20/25 setting
and click Read Codes and then Do Job... button
You'll see program start and may say power on, I ignored that.
You'll then see various codes and info scroll up, in my case convert CID to brown
then it gave all codes on page, then back to red.
This took 1 to 2 mins.
Do not close the program, copy/paste the codes readout and note the codes to Unlock & Relock as you'll need them in a moment.
Then with phone on, enter service menu using direction button and stars <**< and scroll to where yellow padlock is and enter whichever code is needed manually, eg ESL/ECK 8 digits, then OK. It will then say unlocked.
(It may be the locked on shows automatically as the only option.)
Take care to enter unlock code and not relock code as you get limited chances (3 ?). Type carefully or you'll lock the phone up and more hassle.
I think that's it, job done. Insert whatever sim. Test. (Mine now unlocked)
DSS20 easy to find, quite cheap if you don't have one.
I don't think you can use ordinary DCU cable.
!!!! Remember - it won't work via the hub/multi USB adaptor! Plug straight into the PC on a main USB socket. !!!! Won't function via usb hub with the dss-20 or dss-25 - imho. If software does not recognise presence of phone, unplug usb and plug in again. Clue that this problem is apparent if you get message "Cannot open COM3" from software. Just close program. Unplug usb. Plug in again, restart software, should work. Try again a few times, usually works.
I hope this info clear - took me 12 hours to sort it by trial & error although help here was good, thank you people.
-----this is example - what you'll see on the readout as it unlocks, I've changed the numbers obviously-----
Switch phone ON
Get phone info
Phone OTP CID: 29
Phone Flash CID: 36
Phone KEY: A1_DBxxxx_xx_RED
Phone IMEI: 1xxxxx9
Flash ID: 8xxD
Switch phone ON
Send GDFS application
Convert to BROWN
Switch phone ON
Send GDFS application
Read all codes
IMEI: 1xxxx9
Unlock NCK: 01234567
Unlock NSCK: 01234567
Unlock SPCK: 01234567
Unlock CCK: 01234567
Unlock PCK: 01234567
Unlock ECK: 01234567
Relock NCK: 01234567
Relock NSCK: 01234567
Relock SPCK: 01234567
Relock CCK: 01234567
Relock PCK: 01234567
Relock ECK: 01234567
User code: 0000
Convert back to RED
Operation succesfull
-------------------------------
(The 01234567 and xx will be replaced by your phone's own unique numbers)