Just after your thoughts. I fancy the LG Optimus GT540 £99 on pay as you go. Internet will be via home wifi and gps via 'offline'. Hence not going on contract.
LG are bringing out the Optimus One in October for £130 - £140. Based on the below which would you recommend?
Both have same camera Both have same processor GT540 has 3" screen and One has 3.2" screen Screens are same resolution GT540 uses Android v1.6 (but LG have confirmed that it'll be updated free to v2.1 very soon) One comes with Android v2.2 installed
I bought the Lg gt540 for my nephew as hid first phone, it's alright as such. Pay the extra and get the Optimus one, especially if it has 2.2 and if it has a capacitive screen and not the resistive like the gt540. The capacitive screens are way better.