Thanks a lot everybody for the input.
With regards to keeping the DVX and potentially getting paid work with it, I totally understand what you're saying and appreciate the suggestion but to be fair, I don't really see myself doing much paid work for the moment. I'm at university full-time and that's keeping pretty occupied, plus afterwards I plan on doing a masters in cinematography, so I'm not going to get too involved in the big bad world just yet. Every single time I'm shooting stuff, whether in school or extra-curricular, I can't help but think "why aren't I shooting this on 16mm." So I figure it's time to make the switch.
I think that going down the route of buying reg 16mm and converting later is my plan now. I've also decided do sell some of my still camera kit for the 16mm fund (2 leica M's plus lenses - ARGH!). So I figure my new budget should be somewhere in the region of £3000 - which should be a little handier.
I reckon it's gonna be an ACL with an overhaul/s-16 conversion (sooner rather than later).
Rather than spend half my life just reading about it; I just want to get out and shoot 16mm asap as that's the best way to learn, right!
Thanks again for the suggestions - keep 'em coming!
Stephen.