Does Premiere Pro CS5 mercury engine work with my imac 27 inch?

I have a 27 inch imac that I bought 4 months ago.   Yesterday I upgraded my Creative Suite Production Premium CS4 to CS5.   It costs a lot more do to that when you live in Japan (about $300  more).  I installed it all and to my disappoinment I can't access PPro's  new mercury engine on 64 bit.  I read the specs and I thought my  computer is capable.  Can somebody please tell me if my specs are good?   imac is a total disappoinment in that they will not replace any  parts!!!   I have two very expensive items (imac 27 inch and Adobe  CS5).  Can I not utilize the mercury engine in P PRo?  I will be so sad  if that is the case.   I've called apple and they say they won't change  the graphic card or CPU if those are my problems. Which means I'll have  two great things, my new imac and new Adobe soft and I can't use them  together.
Anyways, here are my specs.  I hope someone can shed  some light on this matter for me.  I'm hoping I just don't have my PP settings right.  Thanks in advance!
Model Name: iMac
Model Identifier: iMac11,1
Processor Name: Intel Core i7
Processor Speed: 2.8 GHz
Number Of Processors: 1
Total Number Of Cores: 4
L2 Cache (per core): 256 KB
L3 Cache: 8 MB
Memory: 16 GB
Processor Interconnect Speed: 4.8 GT/s
ATI Radeon HD 4850

Harm
  Thank you kindly for your reply.  I figured I was only able to use software only MPE as that is why it is all greyed out in my preferences.  I was hoping I had not done something simple that would fix the issue.
So after reading a lot on here about MPE my question is this:
Is soft only MPE 64 bit?  Is it still significantly better than my CS4 P.Pro that I had or did I just waste a crap of money on the upgrade?  What does soft only MPE have to offer?  so far my editing doesn't really seem to be much faster but I haven't put it to test yet. And of course, the render line is always red and not yellow like all those fantastic videos show when they're bragging about how cool Hardware accelerated MPE is.
If feel like I got robbed.
Thanks for your time.
Oh, one more thing.  In the near future, "could" a driver update for my ATI Radeon HD 4850 possibly fix this issue?  imacs will NOT replace CPU or GPU.  For that, I am really, really annoyed.  The main reason I bought this computer with the specs was to use Adobe at its best.
Regards,
Kelly

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