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Wow... someone with the same problem as me, lol.

in 5 years I have gone through about 8 or 9 used or low-end-new Macs. Currently I have the new 13" MBP, and while I'm happy with it, I'm trying to sell it to buy the 15" i5 - its what I really wanted when I bought mine, but I talked myself right into the 13.

Anyway, as for the new iMacs, the 3.06 i3 offers great bang for the buck, especially since Apple now includes a DEDICATED video card instead of the integrated 9400M.

If you can swing the extra coin, though, I'd get the upgraded 21.5" - that gets you a processor bump (3.06 to 3.2), but more importantly a larger hard drive (500GB vs. 1TB) and more VRAM (256MB vs. 512MB) in a better video card (4670 vs. 5670). Overall I think the upper 21.5" model is worth the money.
 
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