Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
The extra storage is nice, but what would the prices be say 9 months from the date of purchase? Get the one that is going to be more expensive later now, and then get the other a few months down the road. If you skip on the AC for now, just don't forget to get it later. You very well may not need it, but if you do you'll be glad to have it.
 
Something to consider is that the 24" iMac has FireWire 800, which is excellent for external hard drives. You can pick up an external enclosure and add whatever size of drive you like to it and also use it with other machines.

Not to forget that Time Machine in 10.5 will require an external drive.
 
I'd go for the 500GB Drive. If at the end of your first year you decide you want/need Applecare, then get it, but the 500GB is more useful straight off.
 
Macky-Mac said:
if you would rather be safe than sorry....put the money into an external HD so you can have an easy way to back up all your files

Bingo. Then get applecare in a year if you really think something might go wrong.
 
Razorhog said:
Another quick question about applecare: Can it be renewed after the 3 years is up?

Not Applecare, but some resellers offer their own plans up to 5 years, for the truly risk-averse.
 
The hard drive upgrade then scour ebay for the next year until you find a good deal on Applecare. (In other words, if you are set on purchasing Applecare, don't buy it directly from Apple!)
 
miles01110 said:
Oh, I bet I could do it. It's just a matter of how long it would take me.
Of course you probably could...but then you'd really have to hope that your computer didn't need any service under that AppleCare agreement.
 
applecare without a doubt.

new machine at the size..hopefully no problems, but still..good to be protected

AND

HD prices keep going down. by then a 750 might be worthwhile..
 
Considering that you can get a 400GB SATA drive for $100, I wouldn't pay $200 to upgrade the drive. You can get an enclosure for $40-$80 and you come out with an extra 150GB of space for less money.
 
Razorhog said:
Another quick question about applecare: Can it be renewed after the 3 years is up?


No.

As to the original question: Although I believe in Applecare, backing up is even more important. I would get a 500 GB external, Applecare next, and then have the internal drive upgraded when you outgrow it. Just a thought.
 
Mac-Addict said:
500GB or Applecare plan in my iMac 24inch coming christmas?

I just ordered a 24 inch Imac and it will be here next Wednesday..I also thought about this but I decided to go for Apple care because I can get a 250gb external hard drive for 11 500 yen (or about $100 U.S) here in Japan made by buffalo or recently a 300gb external HD for 14 800 yen ($120 U.S)
also mabe by buffalo...So hard drives are getting cheaper BUT if your computer breaks down 1 day after the warrantly then you're screwed....

Its better to be safe than sorry
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.