Ok, re running the unlock tool again (see previous) post, has now enabled me to Debug applications.
So I'm pretty much sorted. Web browser, is still a bit unreliable, but I'll put that down to living in the sticks
Thanks to Jason Langridge for confirming I was following the correct procedure to unlock the phone. In conclusion the Orange SPV E650 is a great phone and one I can now develop for... 
* I know I'm showing an HTC VOX, but its the same as an E650 