At work I use an edu. model iMac - 2.0GHz, 1GB RAM, 9400M - and after loading up Entourage for email and Safari from regular browsing, it slows to a crawl.
For example, right now I have Safari open with 2 tabs (both Macrumors), Entourage 2004, and Activity Monitor. I have ~271MB of RAM free and my page ins/page outs are 325.5/237.9MB, respectively. This isn't terribly bad, either.
I can't wait - our tech coordinator just informed me last week that the district ordered 2GB memory sticks (for a total of 3GB) for ALL of our aluminum iMacs. 😀