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@MrDrem
If you spot it, totally D-Lock it (though maybe not the rider if someones on it, I suspect that would be assault), the fact its been stolen doesn't mean it isn't yours. If you find out who was riding it/bought it, push for the police to at least caution them for handling stolen goods.
This is one of the methods availiable to help stop thefts. If you do get it back, and the person is issued with a caution, try and get it into the student/local paper. If people know that people are being done for handling stolen goods having bought cheap bikes, they might be a bit more wary about buying dodgy biikes, which should cut the demand, and thus cut the theft rate. Thats the theory anyway.