erm, it's difficult to explain, especially after a few beers.
basically - my dept. has the new route phd (research masters + phd). the first two terms of my department's phd involves research training at masters level (x4 modules) regardless of whether or not the person is actually on the new route phd or traditional mphil/phd route. these modules are classed as approved by the esrc as new route modules for the masters and we all have to do them. the third term of the first year for new route students, like myself, involves writing a research methodology dissertation (in order to get the new route masters). for those who are on the traditional mphil/phd route, the third term involves preparing the conversion paper. by the end of the first year, the new route masters group get an msc and are ready to begin the second year of a four year route, whilst the traditional mphil/phd group start the second year of a three year route. the new route phd gets an msc, a year extra to finish and the opportunity to apply for research council funding (twice: once before the msc and once after), whilst the traditional route are not allowed to apply for research council funding because they do not have the requred masters. however, wierdly enough, the new route four year group can submit a year early and actually spend the same amount of time as the mphil/phd route, but get funding and extra qualification if they are lucky (like me).
the whole thing is a bit strange, but has been embraced by loads of universities. it may be different for the ahrc, but i always thought a new route was needed for the ahrc too. certainly in the social sciences we have a huge need for different research paradigms because the field is so diverse. i had experience of research methodology for a previous masters, but nothing like this at all.