Hi all,
Thanks so much to everyone for your feedback! I had the opportunity to go to the Apple store last night and use the mini - it is indeed fast! I tested both HD content from Itunes and well as content from hulu.com, and everything ran fine. I also used iMovie, iPhoto, etc., and everything opened quickly and the software was very responsive... Good stuff..
Also evaluated the 24" Cinema display, and LOVED it! It is better sized for me than the 27" screen on the iMac, and loved the colors and clarity.. I know some folks recommended other monitors, but the Apple Studio Monitor looks really cool, and is covered under my applecare on my mini (which is really nice..) Plus as my wife is a teacher we can get it for $799..
I didn't get much feedback on my question regarding upgrading from the 2.53 to the 2.66 processor for $135 (again, education discount) but in thinking more about it I think I will save the money.. Don't think I will get that much difference in performance for the money I will spend on that..
Lastly the hard drive.. Lots of folks recommended a 7200rpm drive, and in looking at the MacBook Pros, Apple offers this!! Why would they not offer this speed of drive on the mini?? I was going to special order a mini with the 500gb hard drive, but may just buy one at the store with the stock 320gb, order a 7200rpm drive from newegg, and pay a 3rd party computer store to install it.. I don't know if I feel comfortable doing it myself (as I also need to reinstall the OS which I don't know how to do), but I have not watched the instructional videos on line yet. I may feel better after doing that...
My only hesitation now is the 9400M graphics card, but as mentioned it played movies well, and if the mini is upgraded to something better next year, I can always sell mine and upgrade.. As some very smart folks mentioned, it is SO MUCH better to have a separate monitor and computer!!