IMac purchase advice

I intend on buying an iMac 27" soon, probably as soon as Lion is available.  I'm a 54 y/o guy. I use my desktop for all basic computer needs, for communication with my employer (bidding work schedules, keeping informed about the co., training,etc.), Internet, banking, tracking/controlling investments, tracking family budget and finances, email, some gaming (not a rampant. gamer;-), news feeds, Skyeping, some word processing, I teach an occasional class & give occasional lectures, (is iWork enough for this, I wonder?), distance learning (completing a graduate degree online), and  I plan on expanding my hobby on photo and video editing, in particular, digitizing old family photos and old family videos, an creating memorable slideshows and music videos for me and my family and friends.  I also have a first generation iPad, my wife an I have small iPods, and intend to each get an iPhone as soon as the refresh happens.
Can someone give me some advice on how to equip my iMac 27" so that I am not getting too little or too much?  I would like to stay under $2,100 if possible.
Thanks in advance!

For your needs the i5 would be fine, while the i7 is great and state of the art speed for what you're doing there isn't any real need. I would also stay with the base graphics card too. The ONLY reason I can think of to upgrade the CPU & GPU is if  you intend to do 3D graphics such as online gaming, CAD/CAM and/or 3D rendering. From what you have stated I didn't see that was how you intended to use the machine. The slowest part of the machine will be the hard disk however again for your needs you would have a very nice machine.
I would upgrade the RAM (OWC is a very good choice) to 12GB. I agree going with the base $1999 machine would provide the best bang for your buck. Also don't forget to factor in additional costs for:
1. Sales Tax
2. RAM cost
3. Time Machine backup EHD
4. AppleCare BTW: you can also buy this discounted from Amazon or LA Computer Co for less than Apple charges direct. This is optional but a wise investment. 
Roger

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