Currently have the C2D 2.93 and have had it quite a while and am just wondering how much better the i7 will be over the 2.93.
Tempted, but if its just marginal improvements I may skip it.
The 2.66GHz i7 is about 40% faster than the 3.06GHz C2D according to my own tests for multithreaded applications. It's 60% faster for single-threaded applications.
Graphics wise they both use mobile versions of the cards, but the newer iMacs use desktop processors which put out more heat and can therefore run more cores and faster clock speeds.