The main difference is the GDDR5 of 5750 (mobility 5850) allows for twice the memory bandwidth than the GDDR3 of the 5670 (mobility 5730)-- even though both cards have only 128 bit buses.
According to benchmarks, the mobility 5730 is 60% the performance of mobility 5850.
OWC actually has a program right now that can replace your gpu in the iMac for you, and I think they offer their own warranty. It's expensive however, because you're paying for the special mxm cards, and OWC's service. That service is only for 27 inch iMacs however, so it'd only really benefit late 2009 27 inch owners.