keep your eyes peeled on the carphone warehouse web site, under 'clearance phones'

these are phones that have been returned within 14 days when dispatched on contract. they are then fully checked over, resealed and sold cheep cheep on pay and go.

also keep an eye on play.com some excellent, cheap phones on there.

the phone market is SOOOO unstable at the moment, ie. you have your eye on a phone, you go to buy it for £170 ish quid, then 2 weeks later it's only £90 brand new

eg. nokia 6300, they are only about £90 now, they were a couple of hundred 2 months ago! bloody good phone aswell, apart from the odd bluetooth fault.