IT Project management qualifications?

ITIL v PRINCE2 or any other contenders - any opinions on what is good or bad?

ITIL isnt going to teach you how to be a project manager. ITIL is just a framework that supposedly shows you how IT should work in a Best Practice kind of way. It also provides a common set of terminology for IT stuff as a lot of different IT people call the same thing something slightly different (not talking technical stuff tho, more conceptual and high level). I've got the basic ITIL v2 certificate and as my employer is very into ITIL I'm sure I will be doing v3 very soon - it certainly hasnt given me any additional project management skills but I would say it does look good on your CV if you have some appreciation of it in an IT role.
PRINCE 2 as I understand it is more about project management - however I havent ever looked into it so I cant really give you a lot of info on it.

So my thoughts would be: Get an ITIL foundation certificate just so that you at least know about it and understand it when people start talking ITIL at you (which someone will, trust me) but concentrate more on the PRINCE 2 certificate if you are wanting to do a project management role.

Also a good general business cert from CMI wouldn't hurt. My missus just finished the HR and Business advanced diploma and I have to say while the courses where very meaty they where also very relevant for managing any style of project within a business.