Best solution is to create a custom 200 pound concrete case around your imac, then bolt the two peices together. Also booby trap it so if the concrete ever gets unbolted it sets off a self destruct sequence. That will be sure to deter thieves!!
Best software hands down is Project Prey http://preyproject.com/
Latest version even got Wifi Geolocation.
Amongst other things it takes screenshots of the desktop, iSight capture and the location on Google maps.
It's free!