I have a few issues about applications and how honest to be at interview. I am in the process of applying in at a uni I currently work at. There are 40 projects and a limited number of studentships and so it will be a fight between all the candidates for which projects get the money. I also have an interview in another uni next week, which i suspect is gonna be the same deal. The question is how honest shoudl i be regarding the other pending applciation? especially as the topics are similar but have a lot of differences, and this may reflect on my commitment to the project if I admit this in interview. ALso I'd rather the project at the uni i am now, but may hear about the other one first. If i get the studentship can i hold off accepting til I've heard back from the other? (probably dubious) or should I accept and withdraw other application? or accept and then drop out if i get the other studentship?

sorry for a lot of questions. I really want to do a phd and really want the right project, but feel i'd be happy with either.

There's nothing wrong with telling them that you have other applications on the go. This suggests to them that you are serious about taking a PhD. You could say that this is the project you really want to do (and explain why). In terms of accepting the other one ahead of an offer on this one, you may as well do so. You are not contractually bound to them and they can't make you do a PhD.

If you feel equally happy with either project, you should accept the first one that gets offered to you. I also feel you shouldn't be obliged to tell them about the other application - don't mention it if they don't ask.