I'v been looking round for a cheap Fender Telecaster and i was told the other day that I could pick up a Mexican Telecaster for about £350 and i was wondering is there a major diffrence in the performance between this Mexican Tele and the USA Tele or im i just paying more coz it says USA on the other one.
Yes, there is a considerable difference between MIM and MIA. But if you are looking for a "cheap" Telecaster then the MIM will outperform your expectations by a 100 miles, imho.

American Stratocaster + Blues Junior