ISA's are made up of different components;

Maxi ISA(Managed Funds, Stocks&Shares) £7k each financial tax year.

or

Mini ISA's 3 different options

Mini Cash £3keach each financial Tax year
Insurance ISA (to be discontinued 2005) £1k each financial Tax year
Stocks & Shares (Manages Funds, Fixed Interest Funds etc) £3k

as the insurance element is being dropped in 2005 £4k can be invested in a mini Stocks & SHares ISA.

****Note If you hold a partialy funded Maxi ISA in any given tax year, you are not entitled to a mini ISA*****

HTH