Looks like this is all down to my use of Hiss. Stopping Hiss and re-enabling Growl (v1.2.2) resolves this. Which is a shame as Hiss was working rather well; although to look at the support forums for Hiss, there's very little response from the developers and most responses are from almost a year ago.
Haven't upgraded to (and paid for) Growl v2 yet, so no Notification Centre integration on my machine right now. But I can live with that.
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