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this is a hard to do. if you manage, post back with pics of the taking apart!
 
I think you ought to hold off until the Seagate firmware issue is resolved. It seems to be restricted to certain Oxford controllers, but there is a possibility that the iMac's controller might also have some issues.
The internal ICH8 SATA controller? :confused:

This is the internal drive.
 
I was going to buy a 1tb drive and iMac at BB. They said it was $50 for the install of the drive. Might be worth your time and anquish of diy... They want to charge u for os install, but that's too easy.
 
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