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Iphone Cheapest Deals Over 18 Month

I'm realy in a tiff on what phone to get

Touch Diamond

Really have no clue what to get at all. I currently have a work phone on Vodafone Business Contract which my quarterly bills are never any more than 40-50 quid. So rather than buying a phone outright I have come to the decision to buy a contract get the phone more or less free and get some minutes out of it too, and the majority of the time carry on using my vodafone sim and maybe just use my contract minutes on a evening if that makes sense?

I'm very tempted to get the iPhone but the camera is pants on it. Where are the best deals to be had at the moment and what would you all reccomend? Would it be worth waiting while like after christmas for something a bit newer perhaps and maybe the prices will go down a bit? iPhone with bigger camera maybe?

I dont really want to spend anymore than £35 a month tops
  172 cup
Seems a bit strange joining a clio forum to ask a phone related question your first post?

Personally I'd get the 3g iphone but £45 a month to get it free..
:S Erm this isnt my first post!

And what minutes, texts and internet usage would I get for that?

Also where do I stand in terms of upgrades do I get an upgrade after a certain period of time?
iPhone, £45, 1200 mins, 500 text and unlimited data and Wifi through BT OpenZone and The Cloud.

And upgrade is going to be after 18 months... (18 month contract), unless Apple release a new iPhone and they're feeling generous - with the 3G release, they let anyone with the original iPhone upgrade early
iPhone, if you want to spend £45 a month. Crazy imo.

I didnt like the Diamond. Was very slow and crashed when the bloke in the shop demo'd it.