Another vote for the 17-55mm F2.8... might be struggling to get a new one for £500 but should be some decent 2nd hand ones. The only problem with this lens is that it tends to suck dust inside the lens due to the extending/contracting of barrel whilst zooming. This is usually solved with sticking a UV filter infront, I personally dont though as I hear it can affect image quality.
It's probably one of the sharpest zoom lenses you can get, decent depth of field at F2.8. Focus is usually quick and silent. And the IS system is brilliant, can get decent handheld shots at 1/10th sec.
I'd put another £100 towards it and buy a 2nd hand 24-105mm, or if I wanted a zoom lens buy a 70-200L f/4 non-IS and pocket some change for some filters.
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