Thanks Bewildered, that's helpful.

I'd love some advice from anyone who has secured a funded research project, instead of proposing their own project for a PhD. I have an interview in a week for a funded research project [in English Lit] and have no idea what to expect. My MA supervisor suggested I apply for this in case I was unsuccessful in obtaining AHRC funding for my own proposal with his university. I have to assume I was since I've had no feedback at all from them.
Can anyone advise on what is specific to this type of interview? Obviously they want something specific achieving by the end of the PhD - how much autonomy do you find you have as an academic researcher? Am I expected to have extensive knowledge of the topic? [I don't, but my existing knowledge is very relevant and could be easily transferred]. What do you wear, could I be too formal?

Long story short, I'm at a very low ebb, thinking I've wasted huge amounts of time and money I can't really afford over the past two years doing an MA and trying to secure funding for a PhD at various universities and failing, and yet knowing there is nothing else I positively want to do for a career. Can't face another year of application and rejection so if this doesn't work out I'll have to find something else to do. Am well aware that this attitude doesn't bode well for success at interview! I just want this so badly and don't want to muck it up for myself by giving in to this stress.
Thanks to anyone who reads/answers this.