Why is it hot?
12V/1K = 12mA, * 7 worst case = 84mA, shoudn't be hot from that.
The TPIC6B595 is powered from 5V?
Yip, TPIC6B595 is on 5v.
Try an experiment - with no LEDs on (all outputs high), does it get hot also?
Hi there.... well this in now finally working :-)... so here is the circuit to help guide others in a similar position.
Only got joy with the N type MOSSFET, the bit I was missing for a while was a pullup resistor from 12V to Gate.
Thanks for all the help, it is very much appreciated 
Part # is MOSFET, picture is NPN.
Yes, need the pullup to turn the P_channel MOSFET off.
6B595 output going low turns it on.
Sorry for the drawing error - showing my lack of experience... hopefully it will still allow folks to wire things up right - the part numbers are correct.
I have recently come across these books so learning all the time: http://www.theelectronicsbook.com/