Configuring an iMac

Hi all
In the next few weeks, I'll purchase an iMac. It will replace a Dell desktop that's just too old and frustrating to use (windows 98, arrgh!).
Mostly this will be used to surf, email and maybe if I equip it correctly, do a bit of gaming - I haven't been into gaming, but if Flight Sim (or similar) works with the new processor, then I'm definitely interested in that. When taxes are added, the cost of the 20" model doesn't allow any room to add anything. My budget would really be stretched - but it is well equipped as it is, and I have not ruled it out. The 17" model leaves a bit of room to add stuff, but I would appreciate some help in understanding the best way of doing this.
First, whatever model I decide on, I will have iWork installed, a wireless keyboard and mouse, and Applecare. The standard 17" model has a 2.0 GHz processor, 1 GB memory, and 160GB hd. I think I'd like to have 250GB hd. The question is should I also consider the 2.16GHz processor as well? What will that do? Or, would it be more advantageous to add memory, and how much, or leave it at 1GB?
Now, I realize that the iMac is due for a refresh and Leopard is about to be introduced. While it would be great to have both of those, I'm not sure that will be significant for my purposes, and it's not necessary that I have the latest in technology, still ... And I would guess a price increase isn't out of the question, either.
So gurus, your help would be appreciated in clarifying this a bit. Thanks a lot.
JP
p.s. my PowerBook is away being repaired - can hardly wait to get it back!
PowerBook G4   Mac OS X (10.4.8)  
PowerBook G4   Mac OS X (10.4.8)  

Thanks all for your thoughts and comments. You've pointed me in the right direction. I forgot to mention that I would store photos and a bit of music too. So, now I'm thinking the standard 20" model would be quite adequate. Yes, I have been looking at the refurb listings. I'm trying to walk the thin line between best value for money, and a system that is robust enough such that I won't be wishing I'd done it differently three or four years down the road. The final configuration (even the entry level 17" model - no, I'm NOT going there) will be light years ahead of the present desktop.
When I pick up my PowerBook in a few days, I'll have a more intensive look at the display units there and order it through him when the time is right.
Thanks everyone.
JP
PowerBook G4   Mac OS X (10.4.8)  

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