In reply to The New NickB:
right, forget all this Mg bolluex - you're paying for a name and you'll need to buy a cravat.
Triumph Spitfire - MkIV if you prefer going forwards rather than backwards.
Piss easy to work on, much nicer cabin than the MG midget, 1300 is ok, 1500 better (and they put that in the Midget later anyway). Set of big carbs, decent Konis on the back and it'll be a cracking car.
If you can stretch to it, get a Triumph GT6 - straight 2.0 l straight six, as used in the Vitesse. Mk3 has the best handling. again, miles nicer inside than the MGB, faster, better sorted and a better car all round.
Same clamshell bonnet as the Spitty - think E type.
Still a good price - a really good one is £10k.
Be careful of "later classics" - a 15 yr old M5 or somesuch could make you dry!
If you want a later classic - Scirocco, Capri (but they are now getting expensive), Opel Mantas are still overlooked, as are early 80's Mercs.
Land rovers - even a ratty SIII is £4k upwards. Lightweights ok value ,but they a come with Rule 5 - HTFU and the other car is your crumple zone