There are two links that I can think off :

http://www.silabs.com/products/...ttools.asp

Spend your time in this location and look at the USD99 kits. Maximum value for money and they all come with a JTAG interface. Cool ones.In India you can look up thier dealer at www.hynetic.com

If you still want a cheaper option then look at the MCB900 from Hitex using the 89LPC932 for some 40GBP. It doesnt get cheaper than this. I got one last month - direct import - no hassles and the board is a pleasure to work with the Keil eval software.
http://www.hitex.co.uk/shop/index.html

I for one have my reservations on simulators and emulators - and instead will advise to go for the real ones. OK its my opinion.

Raghu