Need Help Deciding on a MAC Mini

Hi All,
Quick question for the experts here, because, I am actually torn right now on spending some money for a new Mini.
I am currently using a 2006 iMac, 2.16Ghz Intel Core 2 DUO with an ATI Radeon X1600.
I do movie converting, HD TV streaming (Eye TV 250+) unit, some web surfing, Music conversions, and, stream Audio.Video from my iMac to my iPhone/iPad when I'm away from my house and Garageband Recording (usually an 8 to 10 track recording)
all seems to work well, but, within the last year, even after a full reinstall of OS X, things are starting to bog down. I am running Lion on it now, and, for the most part, it's "OK", but, I kinda think it could be a little snappier and a little faster.
So, I'm looking at buying the i7 MAC Mini.
My question is, will this be a step forward, or, is my iMac a little better? (I don't know. this might be a stupid question). Basically, will I notice a HUGE improvement.
As I type this, I have the MINI in my shopping cart and I am approved for the 1 year finance plan. All I need to do is click "Purchase", but, I wanted to get some opinions on this before going ahead with it.
Any help anyone can give me would be greatly appreciated 

Yes. I have a monitor ready for it. I also have an external CD/DVD Drive as the internal in my iMac hasn't been too reliable lately.
I agree about the price of apple's memory. What I did was, as soon as I ordered the Mini (Yes, I went ahead and ordered it. i couldn't wait any longer), I went to the crucial website and got an 8gb memeory kit for $37.00, so, I was pretty happy about that
Anyway, thanks for the reply. I figured I would notice an improvement as well. I'm thinking, ESPECIALLY with video conversions

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