... 25 people pick 6 numbers
1-49 (yes its based on the UK lottery) so she has a grid made out to suit
this i.e. Adam 1 5 9 10 25 49

down 25 names and numbers

then another grid made of
21.04.12 1 8 11 25 28 48

is there a way of as when you insert the Lottery numbers that the
corresponding number picked changes colour.

This worked for me with Excel 2003.

I have the names in a column starting in A1, and the first grid of numbers in B1:G25.

I have the lottery numbers to be matched starting in K1 and extending to the right.

I selected B1:G25 and used this conditional formatting equation:
=COUNTIF($K$1:$AZ$1,B1)0

Hope this helps getting started.