MA or PhD program?

[philophobia]

I was recently accepted for Fall 2011 at UC Davis for a PhD in English with a guarantee of funding for 5 years. I've been mentally preparing to accept the UC Davis offer until today when I heard news via email from UVA about my acceptance into their MA program in English. The email did not mention any information about funding; only that official documentation would be arriving in the mail shortly. Even if funding is offered (which I assume is unlikely) it will not compare to the deal offered to me by Davis. I guess my question to you all breaks down to this: Is it better to get a Master's from a more prestigious school in the hopes of later getting into a better PhD program, or should I not waste my time (and additional student loans) and go directly for the PhD?

I'm so nervous and upset about this that I cannot sleep. Any advice, information, etc. would be greatly appreciated!

Thank you.

-V.