If you are wanting something decent that is cheap as chips take a look at the LG Optimus, £120 and has all the usual android stuff like wifi, gps, bluetooth etc
Only downside to it at the min is the software is 1.6 but that is getting updated somepoint over the next few months (was speaking to the LG rep a few weeks back). One really great thing with this device is that it fully supports Divx straight out of the box, ideal for movies on the go.
http://www.lg.com/uk/mobile-phones/a...ones-GT540.jsp