Theres one funded place available in my department and i have been told the arrangements for it.

basically each of the lecturers have to submit a proposal and then a proposal is selected and then i beleive left with that lecturer to sort out.

however if they wish, a lecturer can submit a proposal in conjuction with a student, and if it is picked, then the student is chosen at the same time.

i beleive the department is preferring to select an internal candidate and will only advertise if they cant find someone suitable.

one of my major problems is that i have a third, however i done quite well in my masters exams, the only other students off the course to achieve a distinction, had a third and a 2:2 at undergraduate level, so in theory there is no superstrong competition who i have no hope of beating.

one of my first questions, should i approach a lecture to ask if we can propose something together, that way i have some control over the proposal and also make sure i'm the best candidate for that proposal, but run the risk of it being turned down ?

or wait till a proposal is chosen, but then i have a problem that a proposal could be chosen of which i would be an unsuitable/unqualified/unexpereniced candidate to undertake ?

i'm guessing its probably the former, so in which case, do i try to tailor the proposal to my strengths,thus im the best candidate for that proposal, but run the risk of the proposal being turned down as not relevant to the departments interests?

or tailor it more to the departments interests, but then run the risk of me not the ideal candidate?

help me, i want that place!!!

leigh, interesting question.
first question - should you contact supervisor now or wait for studentship advert: if it were me, i'd try the first option - contact your potential supervisor and work out a proposal together with him/her. because if you don't, there is always the chance that someone else will, maybe from a different university - then no position will ever be advertised and you missed your chance!
second question - taylor the project to suit you or to suit your department: well your potential supervisor would advise you if the project turned into something unsuitable to the department. it might be a compromise. but i would not write up a project totally disregarding your own interests. then - even if you get it, you won't like it!

I would definitely approach a supervisor/lecturer who you feel you can get on with or have an okay relationship with and tell them your ambitions. If you come across driven and enthusiastic about the prospect to research and you show them how hard you have worked then they will look on you favourably. I would definitely try that path!!
Good luck