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I get the following error message when to copy some data to use for a find and replace option.

Cannot cut,copy or drag text containg null(code=0) characters

The data appears as a Bold solid bar I think it is a null string \0
I'm trying to remove all occurances from the file and replace with a space

I have been able to do this in the past with textpad 4.5

Try replacing null with space by ticking regluar expression and:
find '\x00'
replace with ' ' (space)

Using Posix standard, not sure if you have to tick that one.