If you are looking for a capable unlocked Android handset, then it might be worth taking into consideration the original Acer Liquid, which is now available from Expansys for as little as £86.
The device comes with a Qualcomm Snapdragon chipset clocked at 768MHz, 256MB RAM, 512MB ROM, a 3.5-inch WVGA capacitive touchscreen, a 1350mAh battery, a 2GB microSD card, Bluetooth, Wi-Fi and a five-megapixel camera with AF.
The only pitfall is that it comes with the original Android OS, version 1.6, although it is officially upgradable to Android 2.1 and enthusiastic supporters have already ported it to Android 2.2 Froyo. The phone, which is white in colour, is the cheapest unlocked Android handset with a WVGA display available for sale.
There are cheaper handsets like the T-Mobile Rapport which costs £49, though it comes with a slower chipset, a smaller HVGA capacitive touchscreen display and is locked.
On the other hand, the Orange San Francisco II (or T-Mobile Vivacity) provides an intriguing alternative, although you will have to be on either network given that there's apparently no unlocking option.