In the SQL BSM, if you go into restore options -> can you rename the files here or restore them to another location, maybe by doing this they wont be renamed when restored.

Are you talking about the Networker User for SQL Server? If so, you cannot rename, it names the copy according to it's own convention.

In NetWorker for SQL Server, after you select the database, right click and select properties. Select the files tab and select the database file at the bottom of the window, The Destination button activates and you can change the file name in that window as well as the folder to restore the database.

I tried this and yes it worked for the .mdf file, however the _log.LDF is restored with the problematic naming convention to the default directory on the lab server instead of the same directory as chosen for the .mdf.
Does this mean I can detach the database and delete the _log file and then restore the _log only??? or will this corrupt the whole thing?

I don't mind doing it as a 2 step process, just need to know it will play well when completed.