You are right - it is a very costly minefield.
This is how i understand it.
Your recorder needs freeview built in to detect the freeview channels, otherwise your television will have to be switched on to the channel you want to record.
You can buy a twin tuner (ideal) freeview dvd recorder quite cheaply like this one:
http://tinyurl.com/y3t8jo
But it has a big disadvantage. It does not play dvds, so you would still need a dvd player and it does not record to removable dvd r or dvdrw. When the hard drive is full, you will have to delete recordings.
You could get round that by buying a very cheap dvd recorder with no hard drive, hooking it up and recording your recordings. Time consuming and frustrating but you can buy those recorders for around �60 - and they do play dvds.
More expensively, you could buy a twin tuner freeview dvd recorder with hard drive that burns to dvd r or dvd rw.
These are harder to find - although there plenty with a single freeview tuner for around �300.
http://tinyurl.com/y7v9r9
I suggest you invest �5 or so in one the Home Cinema magazines and thoroughly research the market before you buy.
My Philips HD recorder is two years old and the best thing I ever bought. It archives to removable disk, so I have been able to preserve all my old vhs tapes to disk.