I thought I'd grab partners drill and have a go at putting my pan rack
thingy up. OK its a normal drill, and I put in a masonary bit, drilled
in and it went ok for about 1.5 inches then it was like mutant rock!!!
It would not budge!! .. SO I put it on hammer action and it chipped away
a little more but not no where near enough to put a raw plug in as per
instructions saying.
Any ideas what I''m doing wrong ?

Are you using a masonry bit ?

The shape at the end of the drill bit itself is different - drills for
steel are sort of spiralled and ground to have a sharp edge at the
end, whereas a masonry bit has a spiral with a blob of metal at the
end that takes the strain of the hammering.

Not the best of pictures, but...

www.lsdinc.com/images/products/masonry_bit.jpg

and for steel (and often used for wood)...

http://ecx.images-amazon.com/images/...500_AA280_.jpg

(this is hubbys computer so my names Laura)

We believe you ;-)