Ebay

Only occasionally dabble in ebay these days, mainly clearing out the garage and kids stuff! 

In my mind what you bought didn't fit the description. ie it's not unlocked and it's not 16GB!

If it was me, I would simply go for a return and refund.

Alternatively can you negotiate with the seller? They must have known it was still locked and the size of memory. But you need to move fast. ebay does state:

Item not as described

A buyer must request a return no later than 30 days after the actual (or latest estimated) delivery date, or, if the seller’s return window is longer, within the return window.

http://pages.ebay.co.uk/help/policies/money-back-guarantee.html

So you have 30 days once you have received the item. You just need to decide how good a "bargain" the phone was. 

Apple won't unlock your phone, it will need to be unlocked by the phone provider EE (or use an unlocking service by a 15 year old in a dubious phone accessory back street shop).

My 5 pence worth, get your cash back and get a contract with a provider. EE do some good business deals, so do Vodaphone, even for single handsets.

Thanks ,although don't like contracts which is why I 'm with giffgaff, they have a great pay as you go package at £7.50 per month... I've got until the 13th to decide which is why I asked here to help with my decision ..Was also thinking of giving this 1 to my wife and buy another for me ,but in reality I do need it unlocked as it is such a bind when we go away to South Africa cos we got sims for over there 

Sending it back tomorrow for a replacement I hope

I also have the same problem with using Ebay.