Turns out LW8 includes dynamic parenting in a plugin called 'Parenter' loaded in the motion panel. Never tryed it though.
Without Dynamic Parenting the theory (my own) is, you can only parent once per scene (without plugs)- so split your scene into 2 seperate scenes. So far no one has said 'you're so wrong you should be killed' when I got really drunk and typed this out, might help:
http://forum.simplylightwave.com/sho...&threadid=2927 .