Travelling from US to Europe with an iPhone what can I do about sim cards?

I'm travelling to the UK and Paris next month from California and needed to know how I could get my iPhone to work abroad?

I'm currently with AT&T but could I get a micro sim in the UK and use this whilst I'm there? I really don't know how it works as I don't want to be charged loads when I get back home and wanted to find a cheap way to make phone calls and texts whilst I'm in the UK and Paris.

I live in the UK and if it helps I saw a sim card in the £1 shop at morrisons and it said you can text internationally from just 1p and to text to the USA it was 4p per text.

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