Ok, so looks like im getting a contract for the first time, appeal of the new phone mostly and not having to top up all the time.
Limit is roughly £30 pound a month tops and must be on O2.
Been looking at the HTC Desire S,
thats £27 a month, 300 mins (will never use all them), unlimited texts and 500MB internetz

Is this a good choice, does anyone have one they would like to share their views on, or would anyone suggest an alternative, if so, please explain why

The iPhone 3gs 8mb is only just outside the £30 barrier at £32 a month but not sure if that would be any better than the HTC.