I have read the preivios blog on this subject but i think we need to start another. Firstly is it possible to get a V1 template working in V2
Start by describing what you mean by a V1 template. Do you mean a Joomla template for the whole site which has some layout modifications built in, or just a VirtueMart theme providing a certain style for use with any Joomla template?
If you do mean the Joomla template then because of the need to move on to Joomla 2.5 you will need a new template anyway, unless you have the skills to update the template code to work with J2.5
A VM1 theme will not work with VirtueMart 2 because the system used to display the output is very different - but it is much easier to modify and restyle than was the case with VM1, it just needs a little basic understanding of PHP, HTML and css to be able to do this, and to make template overrides to the default VM layout.