Migrating from old G5 to new iMac

Hello
At work, as a graphic designer, I use a 5 year old G5 on OS 10.5.8. I am about to upgrade to a brand new iMac and was wondering what the best way would be to go about transferring files/software from the G5 to the iMac.
I have been advised to use Migration Assistant but have no experience of using this software whatsoever, so would appreciate any advice or tips.
At the moment the G5 has a number of accounts set up on it. One is mine, the other is an old account belonging to the last designer I replaced, and one is an account set up by our IT department even though they never use the mac. Ideally I'd like to just have one account for the iMac to stop any confusion or problems (when I replaced the old designer my new account was set up for me by the IT dept and I've had non-stop problems with file permissions/authentification etc ever since).
Will MA get rid of the permission problems I've been having? Do I need to transfer all accounts?
Does MA transfer settings and password info, or will this need to be recorded and re-entered manually?
Would I be better off just transferring everything manually?
If anyone can help it would be much appreciated!
Thanks.

Remove the unwanted accounts from System Preferences > Accounts. Unlock the prefs by clicking the lock at the bottom and authenticating with your admin password. Select the account to delete and click the minus sign at the bottom of the window. You may be asked if you want to preserve the data or completely delete; choose the complete deletion. Do that for both surplus accounts.
BTW, you can only do this if you're logged in as admin user yourself.
When you're happy that you've got rid of all the extraneous stuff, don't use MA. On first boot of the new Mac you'll be offered the option to transfer files from another source (this is Setup Assistant). Connect the two by firewire and choose 'from another Mac'. Continue with the initial setup as prompted.
Note that transferring all your stuff may take quite a long time (hours).
Using Setup Assistant at first boot ensures you get one account with all the correct permissions.
Using Migration Assistant after creating an account can lead to serious permissions problems, duplicated data and other problems.

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