I'm finding 50mm on a crop sensor a bit too tight and having to stand quite far back if im trying to get shots of people... great for headshots etc though!
Would the nikon 35mm be an ok lens to use or would i get distortion due to it being classed as a wide angle lens?
I figured it would make quite a nice general walkabout lens as well...
35mm isn't a wide lens on a crop sensor, it's 52.5mm equivalent, so a slightly long normal.
I've never used the 35mm f/2, but the f/1.8G is never off my D40 (the D90 never loses its 85mm f/1.8, but that's another story).
So to answer your question - I think you were (quite reasonably) worried about using a wide-angle lens for people pics. Fret not, 35mm on a crop is ideal if you want more than just a head shot. As awp says, just don't get too close to the face - a 50mm or 85mm would be better for that.
IMHO, a fast 35mm is really an essential piece of kit for a crop sensor. In the olden days when every camera came with a fast 50mm as standard, no-one needed to worry about buying one, but now with slow kit zooms adorning most new low- to mid-price DSLRs, the purchase of a fast 35mm is essential.
is a 35mm Ok for close/almost macro shots or should I be looking to use something else. want a lens for landscapes and macro?
Again, awp beat me to it - but it does focus close, you could call it "almost macro", but the relative shortness of the lens doesn't give you a classic macro look, but an interesting look nonetheless: