Do you think i should spend more money? say, £400 - 500??
Nah.. I'm happy with my 320FM, I'd be happy with the 350DX.
I guess no matter the guitar you'd always need to set the termolo aligned and intonate the guitar (I never had one that was intonated from the start).
I don't know if intonation is the correct term. Example, tune the A string, open, to 440 and it might show 436 on the 12'th fret. With intonation I refer to having it ring 440 open aswell as on the 12'th fret. Or rather the octave should equal the flageolett (english word?).
So I mean, people can spend all the money on the world on great guitars but as long as it's out of tune when soloing on the higher frets... what's the use.
I meant in general, not you, ok? So get the guitar you want, set it up correct and even if it's a cheap guitar it will sound better than a more expensive dito that not set up.