Ok finally got a work around!
1. Tried using new save on usb stick, still freezing.
2. Installed on HD still freezing.
3. Reverted back to a manual save from previous level game still freezing.
4. Tried killing myself by jumping off the ledge in the L.E.O. to reset, no still freezing.
Finally what i did maybe just pure dumb luck, when i got to the section where you pull the lever to activate the gondola.
When you hold the
button immediately pressed
to quick dodge, for some reason it missed the freeze. It worked so that's all that counts.
This is the only way i could get it to work, i repeated this a 2nd time and it worked again just to check it was not a fluke.
The game did freeze about 20 times on the exact same spot, previously so this is the only possible solution that works until the patch. Hope this helps somebody, if you get the same problem.