IMac crushing when simultaneously online + listening iTunes + playing chest

I have a brand new iMac ( 2.4 GHZ, Intel Core 2 Duo, OS X 10.5.4). Purchased on August this year in Beijing, China.
Each and every time I am simultaneously online + listening to iTunes + playing chest my iMac crushes !
This happens always when above three things (applications) are run together.
During the "crush" all applications are on hold, you can't use keyboard neither the mouse and there is this load and continues sound " dum dum dum..." which you can't in anyway turn off or reduce its volume. The only way to get iMac " back" is to turn it OFF !!
Now this is not really a thing that you would expect to have on the new iMac.
Local Apple services provider has no clue what seems to be the problem.
Anyone out there with a clue how to fix this issue?
Damian

Thank you for note.
Out of 1 GB memory I still have 560MB free of use.
I do understand that application use some memory, but this is brand new iMac!
I do not use it for any gaming, don't download any music or movies from Internet. So having such bizarre problem makes me wonder. Specially when in Beijing there is no real Apple service provider. Everyone talks about " unstable softwares" or "reseting system" (sic !!). I did not buy a PC!
So the question remains. Unless my iMac is one of the million that requires to add RESET BUTTON.
Regards
Damian

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