Great news! Contract has been cancelled!
I called again yesterday after they again failed to delivery the S3. This time though I spoke to a manager and she told me that she promised the phone would be with me by thursday the 11th at the latest, any later I'd be within my right to cancel the contract, even though I told her I'm still within the 7 day grace period because of it resetting after I receive a new handset.
I wasn't extremely happy but somewhat happy that they had agreed a £41 "sorry" to my account, but still pissed that I had to stay with VF. Anyway 5 minutes after hanging up, a guy called Dave called (first british person I speak to in the whole month!), from the eforum, asking whether or not I had resolved my issues yet. I told him what I had just spoke to the manager about, and he said that he'd go and find out whether or not I was indeed within my grace period. He came back a few minutes later and told me that yes I was and I could cancel if I wanted. He understood my situation, and told me he wasn't surprised I'm leaving after all the hassle. He cancelled my contract and gave me a pac code to use with another carrier. 10 minutes later I was at my local carphone warehouse taking out a new contract with Orange for £26 a month (£50 handset cost), for a white S3! WIN! WIN! WIN! So chuffed. Much better than HOX, although position of the volume key could be on the other side as I keep turning volume up and down, as well as the back key, would be better on the left hand side.
At least I'm not with VF anymore though, and I'm saving myself £5 every month on a contract with more data! (less minutes though, but it's not a problem).