Looks nice. But this is where I think the base 21.5" iMac really looks good which is the same 1920x1080 res as your HP monitor. Getting that Mac Mini 2.53GHz, 320GB HD is $937 + $350 for the monitor. The iMac 3.06Ghz, 500GB HD is $1199 and has a better ISP monitor with SD card slot, video camera, speakers. The iMac is such a good value I don't think the Mini can compare at all. You didn't saved $700, you spent almost $100 more than the iMac.
But you do get the 27" monitor which is amazing for watching Hulu and bigger is nice for watching Hulu. I spent all weekend doing that on my 27" and I know how awesome these 16:9 screens can be. Resolution isn't as important when Hulu is streaming 480p.