I've been offered a used samsung galaxy s 2 which was on o2 PAYG. Will it work on giffgaff without unlocking?
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Yes it will
Added you will to set it up for the internet though and the easiest way is to download the giffgaffAPN app from the 'market' and run using option 2. Or follow this guide http://bit.ly/giffgaffandroid - Android guide
It won't need unlocking for giffgaff and is a very good phone for giffgaff's unlimited internet deals.
Still a good idea to get unlocked if you can though, because you might want to use a different SIM if you get covereage problems or go abroad.