Thanks Stuart - thats what I'll do. Getting OC-703 is tricky in the UK but I believe that Rockwool do a product thats similar.The NORMAL way of dealing with that gap is to wrap a piece of OC-703 in black fabric and place that across the gap around the sides and top, and to also include silica gel under the fabric in some way across the bottom.
The other bit I'm still not quite sure of is the gap between the door frames, which will be the only area where air and moisture could get in. I was planning to close the gap between the two door frames with some strips of 3x1 timber to effectively make the gap much smaller (around 5mm) and then fill the 5mm gap with acoustic sealant- so the inner and outer frames are effectively sealed up but the join is via acoustic caulk. Is this the correct way to do it? I'll post some photos of this stage if the above hasn't made sense