Better video quality on my old G3 than my new iMac?!?!

How is this possible???
The visual quality of my new 17 inch 2 duo iMac 1.83 is horrendous. The screen detail and colors look like they're stuck in thousands instead of millions. Even though the resolution says otherwise (1440x900 millions).
As a test, I played the same exact divx video file on my old G3 pismo powerbook and on the new iMac using my VLC player.
And despite the iMacs supposedly superior 3D card, screen resolution, intel-processor, and every other improvement over the past 7 years since I bought my G3 powerbook, the video image on the iMac is flat-out HORRIBLE!
On the old powerbook, every shade and color of the video is there. Crystal clear. On the new iMac, it's as if nothing but the 3 primary colors are available.
Is this because of the intel processor's need to borrow ram for video? I have 512MBs installed. Do I have to install a ton more just to get the same visual quality of my G3 powerbook?
Am I crazy? Is my iMac defective? Or are the new intel-chips that lame when it comes to VRAM?
Thanks in adavance.

I've discovered what the problem is with my new 17inch Duo 2 iMac...
DON'T EVER BUY A COMPUTER WITH A "GMA" GRAPHICS SETUP!
I'm not talking about 3D gaming, or iphoto, or even Youtube for goodness sakes. I am talking about the basic of basics! The desktop! The menu text! The color and contrast of the screen!
Just turning the iMac on without a single program running, and the machine looks like it's running on a thousand, even 256 colors, at best!
When I first saw how awful the display quality was, I was positive the iMac was defective. But after a couple hours of google research, I came to learn that this was what PC users have always referred to as "the curse of the shared VRAM". Something Apple users have never had to deal with... until now.
I've already ordered a 1GB chip to replace one of the two 256 chips that came with the iMac. But if I can't even get the basic screen quality comparable to a G3 powerbook that I bought nearly 7 years ago, I am going to raise the biggest stink with my beloved Apple Corp. until they take this **** thing back and exchange it for an Intel model with ACCEPTABLE display hardware.
BUYERS BE WARNED: DON'T BUY ANYTHING WITH THE WORDS "GMA 950" INVOLVED, NOT UNLESS YOU DON'T MIND STARING AT A SCREEN THAT'LL HURT YOUR EYES UNTIL YOU GO BLIND.

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    Written by Kappy with additional contributions from a brody.Revised 5/21/2011

  • Migrating large iPhoto library from my old mac to a new iMac

    Hi there. This seems a little complicated, but hopefully I can explain my problem clearly and somebody will have faced this same problem.
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    It's really simple.
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