Final Cut runs perfectly fine on a C2D. (Admittedly I was running it on the 3.06 GHz iMac but still the point stands.) Working with video itself isn't especially demanding - iMovie can run nicely on the cheapest laptop mac, for example. Where you really notice the difference is in encoding/transcoding (shifting video or audio from one format to another), and rendering (where the machine applies all your amazing effects to your footage).
Speed with video editing is very much like large screen size, mobile phone and microwaves - you live a wonderfully happy life without them, but once you go there, you can never go back. Obviously, you should always buy the best machine you can afford; but given that you are buying to a budget, it's not the case that a C2D iMac "won't work". Sure, if you are in a work environment, importing and exporting video all day every day, then speed is very much relevant to you. But if you are embarking on "the Mac experience" and want to get used to using FCP etc, a C2D will work fine. (I guess the only caution I'd have is if you are really into motion graphics - the Motion app in FCS is great but once you start really layering on the complex effects, render times skyrocket. If you already know you will be doing a lot of effects (I'm not talking basic video effects here, I'm talking the complex stuff), then you probably should consider a more powerful machine, so as to preserve sanity.)
Subjectively speaking, as I said I did a fair amount of video on a C2D 3.06 GHz iMac for over a year, and it worked well for me.
If we knew for a fact there were going to be i5 iMacs at the same price point in a week, obviously I'd say you should wait. But we don't and we never will. You could end up waiting till the end of the year, who knows.
As regards Photoshop work, I think the difference (C2D to i5) is fairly trivial, again unless you know for a fact you will want to be editing huuuuge images or something - and even then, ram is as much help as cpu.
As regards how much ram - upgrading ram is the single simplest cheapest way to make a mac faster. Upgrading ram is a good way to help your machine "keep pace" a little longer. And apps like Motion and Photoshop like ram. Buy the max eventually. For basic operation 4gb is fine to start.
Graphics cards used to be for gaming, but they have become so powerful and complex that more and more they are leveraged for other purposes. OSX for example uses your graphics card for aspects of its operation like Quartz Extreme and Core Image. Final Cut and Motion most certainly use your graphics card and will run better the better your video card is.
I think my take home message would be - none of the purchases you could make will be poor choices. When you are buying to a budget, there are always compromises you will be making. That's inevitable. Myself, I'd either sit on my hands and wait for a possible i5; or just buy a C2D with the best graphics option I could afford, planning to add extra ram down the road.
Good luck!
I'm speechless. You probably have one of the best answers so far on the thread.
With having virtually no experience with graphics cards, the media industry and such, this piece of advice has been really helpful to me! At least I know that I'll be fine with the baseline.
Now comes the decision if I should wait or not...
Thanks for your analysis and advice on my question and situation!