Best way to set up or migrate to a new Mac?

Briefly, the best way to set up my new iMac (which arrives shortly) and transfer my accounts, files, etc. from my older iMac (intel OS X, 10.6.7).
I have a time machine back up external hard drive connected via fire wire.
I don't have a second firewire cable but would buy one if it helps.
I have an extra ethernet cable.
I use an ATT Uverse router as my network hub.
Ideally. I want to transfer all settings EXCEPT for a dozen downloaded applications that I no longer want. If I can't pick and choose applications to transfer, then I will re-download them onto the new machine.
What would you recommend?
1. Using Set-up assistant on the new machine? If so, do I physically connect the two machines before powering on the new one?
2. Using Migration assistant after getting the new machine powered up? If so, does it matter if I use mig/asst on the new machine and choose transfer files 'from another Mac' or use mig/asst on the old machine and choose transfer files 'to another Mac'?
In short, given these facts about my situation, what might be the better way to proceed?
Thank you!

Just to second what NewMac1 says, the link to Setup assistant tips (above) doesn't work. Can someone please provide new link? thanks.
It links to a mobile me address, maybe the website was hosted on MobileMe before it closed earlier this year?

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Message was edited by: Lutetia

1) I know I should create a 30GB partition for the iBook backup, but what about for the remaining volume? Is it best to leave it as a single large 200GB partition, or split it into two 100GB chunks? Other than the clone of my iBook, I'll mainly be storing photos (at the moment no more than around 10-12GB).
2) I don't yet have a huge iTunes collection, but if I later want to store iTunes music that doesn't fit on my internal drive, is it fine to put it in the same partition as the photos, or would it be preferable to create a separate partition?
The answer to both question is that it's completely up to you. Partitioning or not partitioning won't affect operation significantly.
3) If I want to install OS9 on the drive, how much space should I allot to it? Would this enable me to run legacy apps on my iBook?
The iBook G4 can not boot from OS 9 so you would only be able to run OS 9 in the "classic" environment.
4) Does it matter how I name the partitions (i.e. should the name for my iBook back-up be the same as the original volume or should it be different?)
No
5) As I still don't know exactly what I need, If today I decide to create only 30GB partition to backup the iBook, can I later partition the remaining space without having to start all over again?
There are a few tools which promise the ability to change the partitioning without destroying the data on the drive. But you should never do this without making a backup of the data on the drive. Data loss can easily happen and in a big way.
6) Also, the drive came out of the box with Mac OS Extended format. Is this the best format or is there another that would be better?
That is the best format.

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