Just to add my ZombieAI() is called in my GameUpdate method which is run in the GameLoop thread:

	public void run() {
		Thread t = Thread.currentThread();
		while (t == gameloop) {
			try {
				Thread.sleep(5);
			} catch (InterruptedException e) {
				e.printStackTrace();
			}
			// poll keyboard - check if keys were pressed
			keyboard.poll();

			gameUpdate();
		}
	}



public void gameUpdate() {

		// process keys that are held down
		handleInput();
		// draw background

		// g2d.setColor(Color.WHITE);
		g2d.fill(new Rectangle(0, 0, ScreenWidth - 1, ScreenHeight - 1));

		drawBackground();
		// player.transform();
		checkPlayerBoundaries();
		player.setBoundsEnabled(true);
		drawPlayer(player.getBoundsEnabled());

		zombieAI();
		checkZombieBoundaries();
		for (int k = 0; k < MAX_ZOMBIES; k++) {
			zombie[k].drawBounds(Color.BLUE);
			zombie[k].draw();
		}

		drawBullets();
		checkBulletStatus(); // JUST FOR DEBUG PURPOSES, REMOVE UPON COMPLETION

		drawHealthBar();
		g2d.setColor(Color.BLACK);
		g2d.drawString("Position: " + player.x + "," + player.y, 10, 40);
		g2d.drawString("Velocity: " + player.x + "," + player.y, 10, 60);
		g2d.drawString("Animation: " + player.getCurrentFrame(), 10, 80);

		g2d.drawString("Face Angle: " + player.getFaceAngle(), 10, 100);
		g2d.drawString("Bullets Left: " + (MAX_BULLETS - currentShot), 10, 120);

		g2d.drawString("Bullets Alive: " + getBulletsAlive(), 10, 140);
		repaint();
	}

Oops silly me, thanks that worked!

Sorry I just now realised that this may not be the right place for this question, if that is the case then can a moderator please move to the Game Programming sub-forum.

I now am able to draw my animation whilst applying a transform to the image. It required a rework of the AnimatedSprite class whereby I extract the images into a BufferedImage array and then in my draw method, I draw the current image with a transformation like so:

g2d.drawImage(animation[getCurrentFrame()], at, getJFrame());

However the image itself is still not rotating around its center despite using the following rotate method which I thought would definitely work

at.rotate(Math.toRadians(getFaceAngle()), getCenterX(), getCenterY());

Below is my updated AnimatedSprite.java class:

import java.awt.*;
import java.awt.geom.*;
import java.awt.image.*;

import javax.imageio.ImageIO;
import javax.swing.*;

import java.io.IOException;
import java.net.*;

public class AnimatedSprite extends Entity {
	private JFrame frame;
	private Graphics2D g2d;

	private BufferedImage spriteSheet;
	private BufferedImage[] animation;
	private AffineTransform at;
	private int animDirection;
	private int frameCount, frameDelay;
	private int currentFrame, totalFrames;
	private int frameWidth, frameHeight, columns;
	private int frameX, frameY;

	AnimatedSprite(JFrame frame, Graphics2D graphics) {
		super(); // call Entity constructor and set defaults
		this.frame = frame;
		g2d = graphics;
		spriteSheet = null;
		alive = true;
		currentState = State.ALIVE;
		currentFrame = 0;
		totalFrames = 1;
		animDirection = 1;
		frameCount = 0;
		frameDelay = 0;
		frameWidth = 0;
		frameHeight = 0;
		columns = 1;

	}

	public void setAnimDirection(int animDirection) {
		this.animDirection = animDirection;
	}

	public void setFrameCount(int frameCount) {
		this.frameCount = frameCount;
	}

	public void setFrameDelay(int frameDelay) {
		this.frameDelay = frameDelay;
	}

	public void setCurrentFrame(int currentFrame) {
		this.currentFrame = currentFrame;
	}

	public void setTotalFrames(int totalFrames) {
		this.totalFrames = totalFrames;
	}

	public int getAnimDirection() {
		return animDirection;
	}

	public int getFrameCount() {
		return frameCount;
	}

	public int getFrameDelay() {
		return frameDelay;
	}

	public int getTotalFrames() {
		return totalFrames;
	}

	public int getCurrentFrame() {
		return currentFrame;
	}

	public JFrame getJFrame() {
		return frame;
	}

	public Graphics2D getGraphicsObject() {
		return g2d;
	}

	public void setGraphicsObject(Graphics2D graphics) {
		g2d = graphics;
	}

	public void setImage(BufferedImage image) {
		this.spriteSheet = image;
		double x = frame.getSize().width / 2 - getImageWidth() / 2;
		double y = frame.getSize().height / 2 - getImageHeight() / 2;
		at = AffineTransform.getTranslateInstance(x, y);
	}

	public int getImageWidth() {
		if (spriteSheet != null)
			return spriteSheet.getWidth(frame);
		else
			return 0;
	}

	public int getImageHeight() {
		if (spriteSheet != null)
			return spriteSheet.getHeight(frame);
		else
			return 0;
	}

	public double getCenterX() {
		return this.x + getImageWidth() / 2;
	}

	public double getCenterY() {
		return this.y + getImageHeight() / 2;
	}

	public Rectangle getBounds() {
		Rectangle bounds = new Rectangle((int) this.x, (int) this.y,
				frameWidth, frameHeight);
		return bounds;
	}

	public void load(String filename, int columns, int totalFrames, int width,
			int height) {
		Toolkit tk = Toolkit.getDefaultToolkit();
		try {
			spriteSheet = ImageIO.read(getURL("players.png"));
		} catch (IOException e) {
			// TODO Auto-generated catch block
			e.printStackTrace();
		}
		while (spriteSheet.getHeight(frame) <= 0)
			;
		double x = frame.getSize().width / 2 - getImageWidth() / 2;
		double y = frame.getSize().height / 2 - getImageHeight() / 2;
		at = AffineTransform.getTranslateInstance(x, y);
		this.columns = columns;
		this.totalFrames = totalFrames;
		this.frameWidth = width;
		this.frameHeight = height;
		animation = new BufferedImage[this.totalFrames]; // reserve space
		getAnimation();
	}

	public void transform() {
		at.setToIdentity();
		at.translate((int) getX() + getImageWidth() / 2, (int) getY()
				+ getImageHeight() / 2);
		at.rotate(Math.toRadians(getFaceAngle()), getCenterX(), getCenterY());
		at.translate(-getImageWidth() / 2, -getImageHeight() / 2);
	}

	public AffineTransform getTransform() {
		return at;
	}

	public void updateSprite() {
		// update position
		x += velX;
		y += velY;

		// update transform
		transform();

		// update rotation
		// faceAngle +=5;
		this.setFaceAngle(faceAngle);
		if (faceAngle < 0)
			faceAngle = 360 - 5;
		else if (faceAngle > 360)
			faceAngle = 5;

		// update animation
		if (totalFrames > 1) {
			frameCount++;
			if (frameCount > frameDelay) {
				frameCount = 0;
				currentFrame += animDirection;
				if (currentFrame > totalFrames - 1) {
					currentFrame = 0; // first frame
				} else if (currentFrame < 0) {
					currentFrame = totalFrames - 1; // last frame
				}
			}
		}
	}

	public Image getImage() {
		return spriteSheet;
	}

	// check for collision with a rectangular shape
	public boolean collidesWith(Rectangle rectangle) {
		return (rectangle.intersects(getBounds()));
	}

	// check for collision with another sprite
	public boolean collidesWith(AnimatedSprite sprite) {
		return (getBounds().intersects(sprite.getBounds()));
	}

	private URL getURL(String filename) {
		URL url = null;
		try {
			url = this.getClass().getResource(filename);
		} catch (Exception e) {
		}
		return url;
	}

	public BufferedImage grabTile(int xpos, int ypos, int width, int height) {
		return spriteSheet.getSubimage(xpos, ypos, width, height);
	}

	public void getAnimation() { // load animation and store in BufferedImage
									// array

		for (int i = 0; i < totalFrames; i++) {

			BufferedImage tile = grabTile(frameX, frameY, frameWidth, // grab
																		// needed
																		// tile
					frameHeight);
			getFrame();
			currentFrame++;
			animation[i] = tile;
			System.out.println(animation[i]);
		}
		currentFrame = 0;
	}

	public void getFrame() {
		frameX = (currentFrame % columns) * frameWidth;
		frameY = (currentFrame / columns) * frameHeight;
	}

	public void drawBounds(Color c) {
		g2d.setColor(c);
		g2d.draw(getBounds());
	}


	public void draw() {
		updateSprite();
		getFrame();
		// draw frame
		g2d.drawImage(animation[getCurrentFrame()], at, getJFrame());

	}

}

I will keep working on this but any help would be awesome thanks!

Ok I made some changes to AnimatedSprite.java, I now rotate the player around the centerX and centerY of the image and I set the graphics transform of the frame to the player before drawing it and then reset to default once the image is drawn. Here are the changes:

	public void transform() {
		at.setToIdentity();
		//at.translate((int)getX() + getImageWidth()/2, (int)getY() + getImageHeight()/2);
		//at.translate(at.getTranslateX(), at.getTranslateY());
		at.rotate(Math.toRadians(getFaceAngle()),getCenterX(),getCenterY());
	//	at.translate(-getImageWidth()/2,  -getImageHeight()/2);
	}


public void draw() {
	
	AffineTransform original = g2d.getTransform();
	updateSprite();

	getFrame();
	//draw frame


	g2d.setTransform(getTransform());
	//g2d.drawImage(image,at,getJFrame());
	g2d.drawImage(image,(int)this.x,(int) this.y,(int) this.x+frameWidth,(int) this.y + frameHeight, frameX, frameY, frameX+frameWidth, frameY+frameHeight, getJFrame());
	g2d.setTransform(original);
}
	

And now the player is rotating which is good however it is not rotating and standing still but rotating in a wide arc, any ideas? Thanks!

Also, somewhat of a sidebug is that the boundaries when I use drawBound(Color c) does not update? I cannot ascertain if I am making a mistake with my rotation or?