OK this is probably the easiest question ever asked on a mobile phone forum but I am a bit of a mobile technophobe ...

I have been looking on the net to get a good phone, one that I can use with my current 02 pay as you o sim card. I presume that a 'Sim Free / Unlocked phone' is one that will accept any sim card, even PAYG one's? Am I correct??

Yes.

Yes it does....

Sim-free means exactly that - the phone is supplied Sim-free, not tied to any network with only the manufacturers software and settings installed.

You can put in ANY Sim you choose to and then configure the settings manually.

yup,
will use any sim card you put in it