[tails007]

I have an iphone which can obviously now take advantage of a pair of bluetooth headphones..

Can anyone recomend me a pair? I want to spend now more than £40.

Thanks.

[Drubbing]

I really wouldn't bother. Expect poor SQ (Vs wired), possible interference and dropout, and to pay a lot more than your budget.

[BAD Dave]

I have a pair of i.tech Blueband R headphones which i have been using with an adapter which slots into the bottom of my iPhone & iPod. Sound quality is good and you can operate play/pause, skip & volume functions from the headphones themselves. All good.
I synched the headphones with the iPhone after installing OS 3.0 and although the headphones do work, only volume function works on the headset. Play/pause & skip do not.
So good news and bad. Other headsets also have limited functionality (see ilounge.com).
I would wait for one of the new generation of BT headphones which will be "Made for iPhone 3GS" and therefore fully functional.