Whilst on the hunt for a Medion Netbook in Sainsbury's managed to get from the cigarette counter a 3 PAYG Skype Mobile for £12.49. Not sure how good they are but essentially bought for the mother in law to keep in contact with her son who is abroad and uses skype.
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For those of you buying this for the "free" Skype calls: You have to remember that you need to add at least £10 credit every 3 months in order to use the Skype feature. The credit you add can then be used for normal (non-Skype) calls.