Yes, it is related to you using PAYG. I'm on O2 PAYG myself and have had many headaches because or O2s crippled service.
Safari won't connect using the EDGE APN as EDGE isn't enabled on O2 PAYG accounts at this moment in time. You will still be able to browse safari using GPRS.
Also, it might be worth mentioning that you won't be able to download email in mail using GPRS - this is because O2 doesn't allow its PAYG users to download anything other than O2 emails (At least in my experience and what I've read).



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