Thanks for the update!
We have been experiencing difficulties with the online banking for our UK based Lloyds account. They recently re-structured their systems, which has only exasperated the problems. The changes have made it effectively impossible to process transactions without massive amount of time. Incoming transactions over a certain number require an amount of work that is unmanageable. We will cease using the account.
Shit, I was just about to open a Lloyds TSB account for our GBP, do you recommend not using them now? Which new bank are you working with?