The 2.4Ghz 20" iMac is a much better deal, if you a going to spend $1,200 on a new iMac, you may as well spend $1,500 and get a more future-proofed, faster version. No question in my mind about that. You would definitely notice a speed difference too.
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Just looking only £150 more for the 2.4ghz here in the uk....SOLD!
Ta,Dean.