Just spoke to T-Mobile as they hold contract for iPhone in Germany, and the guys emailed their head office to see if anyone can find out if a german sourced iphone (tied to T-Mobile) will accept UK sims and register over here, and he also reckons the Carphone Warehouse can unlock them for all networks, obviosuly cost more to buy that way - but I'm not too sure about that as otherwise it'd be all over the net....
But he says it'd be a £350 cancellation fee to cancel my contract before it's up for renewal in Oct 2009!!!!

That said, cancellation fee of £350, or if I let the contract run till end it's £405, so would still be cheaper to cancel