Sarah,
Save yourself £500 and get down to Richer Sounds to buy a Pioneer DV-575a (multi-region) for £99.99 - like i did recently.
Not only is it multi-region 'out of the box' but it plays RCE (ie 'protected') disks with no bother at all - like my RCE version of Spiderman for instance.
Its a superb machine and 'punches' way above its weight - though you do have to take the time to tweak its video settings to get the very best out of it. They are very easy to do though - and give excellent results.
You also get DivX, DVD-A and SACD playback thrown in - along with progressive scan (PAL and NTSC) and component outputs to name but a few. Its great on RGB scart too. Sound quality is noticably better than anything i've heard at anywhere near the price.
With HD-DVD and Blue Ray technology not too far away its worth holding off buying an expensive player to see what happens with these new HD formats over the next year or so.
In the mean time the 575a will do the job nicely.