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@Fox
The 800 can use .tcx files (which are much bigger because they have custom cue sheet entries) optimally for better, more reliable directions (true turn-by-turn navigation).
The 705 is best used with .gpx files which contain no cuesheet entries, only track information (a breadcrumb trail). This will provide turn-by-turn directions (true navigation) but not custom cue sheet entries.
To be honest it's not worth worrying about that much, especially if you aren't worried about custom cue sheet entries, but if you don't have a Garmin at all it is worth bearing in mind that the 800 has this additional functionality and more importantly I have found .tcx files more reliable in the real world with the 800 than .gpx files.
For example, if I plot a course which overlaps itself (say a figure of 8) I've found that using .gpx files the Garmin can get confused and will try to take you the wrong way, I've not found this with .tcx files.
If I'm doing a long ride and my blood sugar is low what I do not want is the Garmin telling me things I know are wrong. It's annoying and will annoy those riding with me!
The 800 also has a few other improvements over the 700 such as the touch screen, but if £250 is still well over Arup's budget this is probably all a bit academic and a bit of a derail (sorry).