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@simonw7
If you are new to the bike world then you will have a shitload of questions as you proceed to plan and execute your conversion, and I would point out to you that the majority of these will be answered by existing 'how to' articles on conversions.
You could do worse then starting at the school of sheldon brown. There are many other such articles that I found by googling specific questions, or by using the search on this site, when i went through this process.
http://sheldonbrown.com/fixed-conversion.html
I second that you will need wheels. You'll be lucky to get much change from £150 on these, unless you are looking to to secondhand market.