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The answer is simple, if you are tight on money buy the iPad 1 if not splurge on the iPad 2 given availability of course.

Penny wise, pound foolish. It depends on how long you hope to use the device. The dual core processor and 512mb RAM update will most likely support not just iOS 5, but probably the next few updates as well. It might be worth the extra cash to buy the current model.

Then again, if you're planning on buying the iPad 2 next year at a discount, it doesn't matter.
 
Picked up a 32g classic as it's now named at Verizon's clearance for 400 and I love it I figure this will hold me over until hopefully iPad 3 comes out with the specs everyone is hoping for
 
I like my iPad 1, I have no regrets in buying that over the iPad2.

I guess if I was a serious gamer, then the GPU or dual core would be a temptation but I'm not.

I don't see any advantage that the dual core and/or GPU brings for web browsing, email, reading books etc. That being the case and stating my needs the iPad 1 especially at its current discounted price is a no brainer.
 
I ask myself the same question as the OP. I would like to know if the new iMovie and GarageBand works with iPad1? In addition, can we use iPad2 camera with Skype?
 
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Garage Band works on the original iPad but constantly "optimizes" apparently as it takes advantage of the extra RAM and CPU power in the iPad 2.

iMovie is only for the iPad 2 according to the App Store, so you can't get it to edit videos sot on another device if you have a iPad 1.

Skype for iPhone/iPod Touch works fine on the iPad 2 for video. No idea when a dedicated iPad 2 version is coming out.

The iPad 2 is my first iPad and I love it. Personally, I don't think I could deal with how the original reloads idle Safari windows so often due to the smaller amount of RAM.
 
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