First of all, that's too little information...
What brand are you aiming for? AMD or Intel
what socket are you aiming for? If you want a processor of a different socket than you have now you'll have to get a new motherboard aswell, and with that possibly new memory....
Secondly... 40~60 pounds aren't really that much... can't get much for that.
wait will July till you buy any new kit if you are not in a hurry as the new gen cpu's are being released then meaning the older stuff is going to drop in price considerably as people try to clear out their stock.
Now heres the minimum we need to know:
1) Are you purchasing new mothebroard or using a old one?
2) If using a old one refer to the manual/Manufacturer website to see what the highest speed your motherboard supports, post here if you need further advise.
AMD have been making the best processors for a while now (due to change with Intels Conroe core , its newest release due July which overclocks as much as 1Ghz on top of stock on Air :S).
All that aside i personally think you should not do anything, save up £400-500 for a descent build. You wont get more than 2.0Ghz for £60, it wont be 64 bit or dual core and you will be wasting £60 on something that is already obselete
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