Sky-Coyote - Sorry about that (bb5 in my post should of course have been bb7) - thanks for the correction!
I realise looking that I also made another mistake when I said that sharpening any note of a diminished 7th chord created a dominant 7th chord - that should have been flattening any note of a diminished 7th chord creates a dominant 7th chord. Thus if we look at Cdim7:
Cdim7 = C Eb Gb A
Flattening the notes one at a time (and rewriting the notes and reordering to make the chord clear) gives:
1. Cb Eb Gb A = B D# F# A = B7
2. C Ebb Gb A = C D Gb A = C D F# A = D F# A C = D7
3. C Eb Gbb A = C Eb F A = F A C Eb = F7
4. C Eb Gb Ab = Ab C Eb Gb = Ab7
Mick