Xcode on a Mac Mini

I just finished writing an internal application for the company I work for, and did the entire development process on my personal MacBook Pro (they only let us get Dell at work). After having completed this project though, they have agreed to shift my role a bit and purchase a mac for me alongside the Dell tower I use for my engineering work, which brings to my question:

I was wondering if a current generation Mac Mini would be able to do everything I need it to for development? This is mainly Xcode obviously, but with a little Photoshop/Illustrator/LIGHT After Effects work. I wouldn't need any insane speed for After Effects so the HD3000 isn't an issue. I just need Xcode to run without constant beachballs. I figure upgrading to 4GB ram is enough, but would 8GB be utilized by Xcode? Trying to stay lean on price so no overkill.

Thanks for any suggestions.