Andy,
I'm only a novice when it comes to DNS but from what I understand you need to do the following. And I could well be wrong!!
1. ns1 & ns2.sound-designs.co.uk have to be set as nameservers on your VPS control panel. The VPS with interhost I mean. The way you do this varies depending on what control panel you are using. In CPanel for example there is a separate section for specifying your personal nameservers and assigning them an IP address (you'll need a separate IP address for each nameserver).
2. Once your interhost VPS is setup with your personal nameserver(s) you need to register these new nameservers with the registrar of sound-designs.co.uk (whoever that is??). They will need to know the IP addresses of your two nameservers and their names. Again, the method of doing this varies depending on the registrar.
3. You now need to set the nameservers for your other domains to ns1 & ns2.sound-designs.co.uk (which I think you've already done by the sounds of it).
So... When an internet query is made for pedaluk.co.uk the DNS network knows that it needs to query ns1.sound-designs.co.uk to get the IP address of pedaluk.co.uk. But before it can do that it needs to know what the IP address of ns1.sound-designs.co.uk is. That's where step 2 came in. The IP address of ns1 is held by the registrar of sound-designs.co.uk and so the nameserver can now be found.
This is where my understanding really gets a bit vague because I only have one VPS so the nameservers and all associated domains are running on the same physical server. In your case the VPS that's running your nameserver isn't hosting the site. I would assume that you need to add the pedaluk.co.uk domain to your interhost VPS but then set it's DNS zone to point pedaluk.co.uk to the IP address of your EUK VPS. So you'd simply have an A record of pedaluk.co.uk. A xxx.xxx.xxx.xxx.
So the query would then be directed to your EUK VPS. On the EUK VPS you would also have the pedaluk.co.uk domain setup but obviously on there it would have physical hosting.
Before you rush into following this babble Andy just wait for someone to confirm that this is in fact 100% correct. Like I say I'm just a novice and I wouldn't like to give you incorrect information!!
Good luck!




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