With a million pound I would first convert some in Euros and give some of it to my mom directly and some in a trust fund as she does not have a stable income (and as it would make her a less tempting target if she does not have access to all of it at once).
I would then convert some of it in dollars and invest them by buying 2-3 houses sold in auction due to the subprime crisis* and rent them at a rate reasonable enough that I have a choice of tenants and can pick good ones (worked for my landlord, he got me as tenant
) but high enough that I can live mostly off off it. Hopefully the poor sods that lost their house would fit both criteria of being able to pay the rent (unlike the mortgage) and decent folks (as I prefer to deal with decent folks than *&^*&). I would also keep some in reserve in case the houses need working on.
If the profit I made on the rents is enough to give me a similar salary to what I have now (minus what I currently spend on rent as I would keep one for me**) I would then look for a part time job to keep me from vegetating on the couch playing video games and watching TV and to be able to invest that extra money.
Also, with any spare money left over (after my mom, houses, reserve funds for repairs, reserve funds for any taxes I might have to pay for that windfall, reser... ok with only 1 million it barely would be enough for that) I would buy myself a new computer, an Xbox 360*** and PS3**** and any retro console I do not yet have that I can relatively easily get my hands on.
* Yeah, I know it sucks for those that lost their houses and their families but you shouldn't borrow money if it is unlikely you can give it back.
** Assuming that I can get a Visa to stay long term there.
*** although its new price in Europe means that I am now only waiting for the 65nm GPU version to hit the stores plus month or two to get rid of old inventory (unless there is an easy way to differentiate the new version).
**** 20GB or 60GB version as I would then have my house in the states and the 60GB European version sucks as much as the 80GB US version and I wouldn't care that the value *for me* of the 60GB version (on Ebay of course) would not equal its price as I would have a bit of money to burn.