My flatmate uses a HTC Wildfire which is quite cheap, runs android 2.2 and is pretty fast, I'd recommend it for a budget android phone. Only letdown is it's tin

My flatmate uses a HTC Wildfire which is quite cheap, runs android 2.2 and is pretty fast, I'd recommend it for a budget android phone. Only letdown is it's tiny screen. I myself use a HTC Desire HD, which probably isn't in your budget :p