It is a totally waste phone imho. A 176*220 resolution screen and a java engine means you will be restricted to midp2 games.... You should go for atleast a qvga screen ....also heard about se F305 or something with wii like feature
If N81 cost 11-12k thn I temptedthegamerulez said:PSP+Custom Firmware = 9k-10k depending on whether you can do the modding yourself or you will get it done from someone.(Someone from TE might do it for free whereas there are some shopkeepers in my area who even charge 1000 Rs!)
A phone will atleast cost you 2k minimum.
You say that N81 is out of your budget and i think that is only around 11-12K which works out to be the same as a psp/phone combo.