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Well my Mini(intel) handles 1680x1050(20'' ACD) but Apple has sold the Mini with ACD support(20'' and 23'' Models atleast) since the start of the Mini(when it was G4) SO ya it should be able to
 
You should have no problem whatsoever. I've used that exact monitor on a number of computers, including Macs as old as a 3rd-gen G4 tower with a low-end graphics card, without issue. Most modern cards have no trouble with that resolution, and the OS certainly won't--it's the native resolution on some newer iMacs and laptops.
 
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