G5 vs. CD
I have two Macs, an iSight G5 iMac (late 2005) and a first gen macbook (middle-ish 2006). The iMac actually seems faster. I believe that this impression was due to the fact that the poor little macbook was running a quite full hard drive, so the performance suffered. Now that I have cleaned up the computer, the performance has pulled even with the iMac. I am not surprised by this, as the speed of the processors and memory are basically identical. Running Rosetta handcuffed the MacBook enough that it was slower.
The iMac has 1.5 GB of RAM, and I don't think that I have used all of it. Given the price of RAM right now, I will be upgrading it to 2.5 GB (max it out) so that it will be better future proofed. The macbook is maxxed out at 2 GB and uses all of it on a regular basis*. I find this quite strange, but can only attribute the difference to running programs under Rosetta.
*slight misnomer- it runs out of free memory, but page outs are still reasonable and there is plenty of available memory to recycle(Inactive). The iMac always seems to have "Free" memory.
In the end, it will all depend on what you want to use the computer for. If you use programs that can take advantage of multicore processors, a newer computer would be the best.
I have always been a fan of getting the best that you can afford. That way, you won't regret it in the future. For example, I wish that I had bought my wife a MacBook Pro instead of this MacBook, as she has adopted my iMac and given me "her" computer. Lesson learned: buy the best for your wife as you may get stuck with it
-----When it comes to the mini, I just wish they would refresh it! Such great potential. This would be a good option in your situation.