Ebuyer have got them for £239.99. I've used them myself, and they're very good.
You need an HD compatible TV, and an HDMI cable to watch Blu-ray films in HD.
It has a wireless B/G network adapter built in, meaning if you have a wireless network that uses B or better, you can connect straight up to the Internet. Failing that, it has an ethernet cable socket.
Signing up to and using PSN (Playstation Network - the equivalent of Xbox Live) is free. Only some game downloads (add-ons) need to be paid for - the same as with the 360.
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