Thanks :-) The call to dead was the problem. I took out dead and it works 100% :-)

Well not 100%, now the bullet lives on and kills other enemies.....I have to think about the correct solution...

Code:
If (Sprite is TEnimy) then
  begin
    Sprite.Collisioned := False;
    Sprite.Dead;
    Enimies := Enimies -1;
    Form1.DXWaveList1.Items.Find('hit').Play(False);
    // Image change
    Image := Form1.DXImageList1.Items.Find('Explode');
    Width := Image.Width;
    Height := Image.Height;
    AnimCount := Image.PatternCount;
    AnimLooped := true;
    AnimSpeed := 15/1000;
    AnimPos := 0;
    Points := Points + 1000;
    Done := False;
  end;