Long-time PC user looking to switch -- what's my best option?

First I'd like to say the Apple forums are, like just about everything else Apple, exceedingly streamlined and smooth...
Now. I'm currently using a very low-end Dell Latitude laptop with XP Pro, and my other computer is a Dell something-or-other with XP Home. I'm just a broke highschool student without a job yet, but as soon as I do get one I intend to purchase myself a Mac.
Right now the only viable option for me seems to be the Mac Mini, with its low price tag. However I have read many complaints about speed, graphics quality, etc. I'd like to know what my best options are for the lowest possible price.
I primarily use computers for internet, instant messaging, music, and programs like Photoshop. I'm certain I'll want at least 80gig hard drive and 1 gig RAM, but I'm in the dark for just about everything else.
To stop my rambling, what would be the best options for me? An upgrading Mac Mini, or should I try to be patient and save for an iMac/etc?
Thanks!

One thing that deserves to be said every time someone posts a question along the lines of 'would a Mac mini be able to do.......?' is that it's important not to confuse the mini's size as an indicator of it's performance.
It's certainly true that the mini is an entry-level system, and it's certainly true that there are faster Macs with faster drives, better graphics cards etc, but a Mac mini bought off the shelf now is still way, way faster and more powerful than the top of the range Mac from just a few short years ago. Indeed, in raw processing performance terms, a $799 core duo mini is not much off the power of my G5 2.0 DP.
In that context, it's worth noting that there are many graphics, design, photo and video professionals using such older systems quite happily, including with software such as Photoshop, so the only concern I would have about putting a mini to use in the sort of circumstances you describe is that if any of the software you have in mind to use would not be native intel, you would be wise to max out the RAM on the mini as a priority, since running PPC software under Rosetta would otherwise prove rather slow and for something like Photoshop, somewhat frustrating.
I have to say that having used Mac minis since they were first released, I've heard a lot about slow drives, slow performance and poor graphics, but not had any notable experience of any of those things - even on my original 1.25 G4 model. Generally, the hard drives used are capable of sustaining perfectly adequate data rates to cope with video editing work (which is rather demanding in that respect), and while there are widespread reports of dim or fuzzy video output, I've found this to be limited to specific displays, and common to other Mac models too.
If you have an Apple store in reasonable reach, I'd suggest you go have a play with a mini and see what you think for yourself. Most people who try one find themselves pleasantly surprised that such a small system performs so well.

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