Of UK products we've seen, we'd suggest theÿOnkyo DVSP406 (£100) orÿToshiba XD-E500 (£120) are the best budget players around.
You can pick up a Sony BDP-S350 Blu-ray player for around £220, mind you, and as well as playing the modest selection of Blu-ray discs currently available it's also a very acceptable DVD player.