Jepperobert - It's alright :) It's nice to hear other people's perspectives too...
Well I am going to be an unemployed student very soon, so my perception of budget is going to change fast! I will be moving to Barcelona, and look forward to exploring the backpacking options once I get there..
Travelinstyle - Thanks for the advise, and I will definitely look up Frommers:)
Kaz - Thanks for those lovely words! :)