I am a bit confused as to the concept of a Phd. You pay the institution tuition fees for letting you do a PhD in there university and then if you get a studentship the funding body pays you weekly/monthly for doing the PhD as well? So if you manage to get a full scholarship for the tuition fees and a studenship under a good supervisor, you could manage to earn money while doing a PhD? please someone clarify my point. Am i right? Is this possible?

Yes if you receive a full studentship your course fees and living expences will be covered.

yes that's right you can get paid to do a phd and your fees are also paid for you

in some countries, like in the Netherlands (in my case), a PhD student is an employee of a university, so you will get a salary together with other regular benefits (such as holiday allowance, contribution to medical insurance, etc.)

Yes, you get paid. It's not huge amounts, but it's enough to cover costs. To my knowledge, it's also usually paid as a bursary, which means you don't get taxed on it like a normal wage.

I have found a project that interests me and it states that is is 'fully funded'. What does this mean ? Will I only get my fees paid or will I get some living expenses? It is confusing.

I've just took an offer on a fully funded phd studentship and it covers fees, plus 12K tax free 'salary' and some funds for travelling and analysis etc. I thnk this is the usual but there may be differences depending on who's funding you. Check out the websites of the funding bodies for more details. HTH

Oh yeah, I forgot... You can normally earn some extra cash by invigilating exams and helping out as a demonstrator in class.