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I went with the bigger i5 just to get the 1gig video card. The i3 would have been more than enough horse power but I didn't want to be bottle necked a couple years down the road if I choose to do some gaming with bootcamp.
 
Neither, i7 is the lowest anyone should buy.

Ever get the feeling people treat this place with a need to instantly express whatever deluded opinion pops into their head? Most of the world would suffice with a Pentium 4, it's called marketing and you've bought a front row seat.

To the OP, I'd personally suggest buying the cheapest Mac you can, besides a few (or several) minutes here or there on handbrake encoding times any Mac sold in the last 4 or 5 years can handle the tasks you describe. Obviously you want the iMac for the 27" screen, which is fine but go for the cheapest option.

I do everything you just described and more on the baseline MacBook Air with 4GB RAM, with half my RAM being used by Server 2008 in a virtual machine. Absolutely no slow downs, not one, nada, zilch.
 
Ever get the feeling people treat this place with a need to instantly express whatever deluded opinion pops into their head? Most of the world would suffice with a Pentium 4, it's called marketing and you've bought a front row seat.

To the OP, I'd personally suggest buying the cheapest Mac you can, besides a few (or several) minutes here or there on handbrake encoding times any Mac sold in the last 4 or 5 years can handle the tasks you describe. Obviously you want the iMac for the 27" screen, which is fine but go for the cheapest option.

I do everything you just described and more on the baseline MacBook Air with 4GB RAM, with half my RAM being used by Server 2008 in a virtual machine. Absolutely no slow downs, not one, nada, zilch.

You have a great point. (Im the original OP) I really should just get the Core i3 and the combined SSD drive(for all around zippyness) w/ 1 TB HDD, but I really would like to keep this machine running flawlessly for a good 3 years. But I have a feeling if I dont go quad-core while I have the money..1-2 years down the line I might regret it.

Who knows, I still have about a month before I actually make my purchase so I might end up getting the i3 and putting that towards my Macbook Pro/Macbook Air 13".
 
I'm currently pondering these options:

1) 21" 3.2Ghz i3 + keep my ACD 23" and use a dual monitor display.

2) Sell the 23" ACD and get the base 27", which is only 135GBP more expensive than the 21" i3.

3) Sell the 23" ACD and get the 27" i5; this is a bit more a stretch but would do just to have some piece of my mind in the future.

I can get around 250GBP for the 23" ACD, which seems like a decent price considering how much monitors have advanced in the past few years.
 
I3 27 inch Imac 4GB 1TB 512 ATI

If you can't afford i7, go with i5.
If you can't afford the i5, get a macbook air instead.

A macbook does not have a 27 inch screen, I have a Windows i7 quad core laptop that is fine but I never even use a laptop. I want a desktop and for surfing and writing a few letters and playing with iphotos, the base system will work fine i3 27, Heck, A Apple computer is obsolete the day you buy it. I got better things to spend money on besides bragging rights for a Apple computer. I will never be able to keep up with the jones with Computers. I am getting a new Windows PC in about six months. I use both kinds with my business and update every 2 years if needed.
 
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