Doesn't matter. A case of exhausted brain and hunger.
After some curry, and a few swigs of Red Berry Cider, I realised I was being dumb...
In case anyone else gets logic block on this, here is what I did.
I simply had a variable to contain the item I clicked on so that I can look at it later. Set this during the routine. Then next time I fire the routine, use it to change the old one back to what it should be.
var prevItem;
$('.update-list-item').click(function (e) {
if(prevItem != null)
$(prevItem).removeClass('update-list-item2').addClass('update-list-item');
prevItem = this;
$(this).removeClass('update-list-item').addClass('update-list-item2');
});
I'm off to bed now...