I am an EU student and graduated in 2002.I am finding it difficult to find funded projects in my field and now after 3 years away from study will this be looked at negatively by a prospective supervisor if I manage to secure funding/get a funded project?

Cathy, why do you think it will look negative? If you can secure some funding, it will look wonderful. If not, you will have to pay from your own pocket. A prospective supervisor is more interested in how well you know a particular topic you are going to research and whether this topic corresponds with his/her research interests. Just my 2 cents ...

I agree with Alex, there is alot of benefits from taking time out between graduating and starting a PhD - you're more mature for starters. Look at the experiences you've had in the past three years as a positive thing, and think of all the qualities that you can take into a PhD that you couldn't before. If you find your own funding that's brilliant.