Gingerbread now available via Kies
The 2.3 upgrade has now been released via Samsung Kies. The Froyo issue is no longer valid, just upgrade it via Samsungs own software. Phones4U are doing this handset at £99 (they call it by Samsungs code - the 5670), what a bargain. It does everything you want from a budget smartphone and is great value. If you turn off 3G and only use 2G and some wifi, battery life is about 5 days, with a few short calls per day. Great phone (for budget use) and great price.
P.S. If you want PAYG - try talkmobile essentials, the cheapest I could find and is fine