Particle Instace Issue

I am having issues with the particle instance modifier. When I set the instance modifier on the object I want to instance the scale of their position is off and all instances happen within a small portion central within the particle emitter. I have attached the .blend as an example, as I am aware my description is rubbish! particleInstanceTest.blend (493 KB)

Ok I figured it out, you cant have the instanced object scaled up or down as this then effects its position. If you want to resize beforehand you must apply any scale on the object and then you can use particle size to add variation!