What you want to do is create a calculated field that only displays the name if the Status field is marked "Active", and then point your value list to that fioeld instead of the Employee Name field.
So create a new field and make is a Calculation:
ActiveStaffName ( Calculated Text )
If ( Status = "Active" ; Name ; "" )
Then edit your value list to get its values from 'ActiveStaffName' instead of 'Name'
I hope this does the trick for you.
You're a star thanks mate,
now i have this list, is it easy to set this as values in a repeating field when i create a new record, but leaves the values in other records as they were ( ie when a member of staff leaves, it will not delete their name off the timesheet records?
If you are setting a field to the value of the value list, when someone is made inactive they will not be removed from that field in that record, only removed from the value list.
This may cause you problems if you rely on the drop-down list to perform searches, if someone is inactive they will not appear in the list for searching.
If this is a problem you can create a duplice of that field on your layout, assign it to a value list set to show all staff, as you originally had it setup, and change the behavior on both so one is only enterable in Browse Mode and the other only enterable in Find Mode. and place the Find Mode field directly under the Browse mode one, does this make sense???
If you want me to explain further on this do let me know.