I'd love some advice from anyone who has secured a funded research project, instead of proposing their own project for a PhD. I have an interview in a week for a funded research project [in English Lit] and have no idea what to expect. My MA supervisor suggested I apply for this in case I was unsuccessful in obtaining AHRC funding for my own proposal with his university. I have to assume I was since I've had no feedback at all from them.
Can anyone advise on what is specific to this type of interview? Obviously they want something specific achieving by the end of the PhD - how much autonomy do you find you have as an academic researcher? Am I expected to have extensive knowledge of the topic? [I don't, but my existing knowledge is very relevant and could be easily transferred]. What do you wear, could I be too formal?

Long story short, I'm at a very low ebb, thinking I've wasted huge amounts of time and money I can't really afford over the past two years doing an MA and trying to secure funding for a PhD at various universities and failing, and yet knowing there is nothing else I positively want to do for a career. Can't face another year of application and rejection so if this doesn't work out I'll have to find something else to do. Am well aware that this attitude doesn't bode well for success at interview! I just want this so badly and don't want to muck it up for myself by giving in to this stress.
Thanks to anyone who reads/answers this.

On the clothes question, I'd wear what you would for a job interview. Even if you feel over-dressed, you will give off professional and reliable signals. All the academic job interviews I've had, I've worn a suit.
Find out as much as you can about the project and the academic(s) leading it. Practice those answers that show how your current knowledge and skills are transferable. There probably will be less autonomy in terms of methods and approaches than in a self-designed project, as those will have had to be written into the grant proposal to get the funding.

I really hope you get it, but if you don't, please don't beat yourself up about not getting funding. The competition for PhD funding in the AHRC/ESRC subjects is ridiculous (and of course the struggle for an academic job at the end even worse), so it's really not a judgment on you particularly. There's no set time to do a PhD in life, so even if you don't do it now, it doesn't mean you're closing that path for good.

Thanks Bewildered, that's helpful.

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Just because you haven't heard back from the AHRC / university don't assume you have been unsuccessful. I heard back in late August. And several friends who heard postive news before found out in August too. There is plenty of time - it is only late July.

Best of luck with the interview.

Before getting my PhD I had a number of interviews for exisitng funded projects (and my current PhD falls into this category too)

Firstly what to wear....wear something fairly smart and comfortable. One interview they gave a tour to the three interviewees together. I wore a skirt, smart top and shoes, of the other two guys one was in a full suit the other combat trousers and walking boots! I don't know which got the job but it wasn't me!

In the interviews I was asked what I knew about the research area but wasn't expected to know everything. In fact any reading of the topic seemed to be viewed positively, though I did fall down in one interview where they asked me about the funding body (it was a charity) and I hadn't thought to look at their website.

As for theproject I thought it would be all mapped out, turned out it was a vague idea in the head of my lead supervisor! The advert was about all they had as a project sepcification, but I guess this varies from post to post.

Good luck with the interview. Try not to be too nervous (easy to say!)