New iMac suitable for FCP and/or Avid?

Hi all,
I'm a digital filmmaking student currently using FCP on my MBP (whilst minding my Ps and Qs, OK? LOL).
Next month we'll be learning Avid - no idea if I'll end up buying a copy of that, but it's quite possible.
I'm planning on buying a 24" iMac to also use for video editing, and most likely some music production using Logic Express as well.
I know the iMacs aren't considered "Pro" machines, but I really don't want a Mac Pro (for reasons of space, $$$, etc.).
I don't mind having to wait a bit longer for rendering, etc., but are there any other drawbacks to getting an iMac for this purpose? i.e. issues with the video card or anything...
Also, considering how I'll be using it, would it be worth the extra $500 to get the 2.8 GHz processor? Will there be a very noticeable difference?
TIA for your opinions-
-Dennis

Any of the new iMacs would be fine for FCP or Avid. FCP ran fine on Core Duo machines with a lot less horsepower than the new iMac. Nobody knows how much more powerful the new Core2Extreme is than the 2.4GHz Core2Duo in the base 24" configuration, because Intel hasn't made it generally available yet. If I were you, I'd buy the regular 24" iMac and buy some third party RAM to upgrade to 4GB (should set you back under $200), and get a large external Firewire/USB2 hard drive or two.

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