I was confused but it now seems a bit clearer - as kevinrirvine indicated it looks like the specs of the EU model only supports UMTS 900/2100
Listed at the link provided:
Search | PDAdb.net - Comprehensive Database of PDA, PDA Phone, Smartphone, PNA & Mobile Device Specifications
The NA (North American) model that will soon be released will support UMTS 850. So it looks like Telstra NextG is a no-goer for us on the Telstra network
I'm pretty dissapointed (at myself too as I didn't really follow though kevinirvine's comments and understand them as well as I should have).
Palm Pre for sale methinks....seriously!!