New (possible) Mac Mini Owner

I am thinking of upgrading from my mid-2007 20-inch iMac (320GB/2GB RAM) to a Mac Mini (500GB/4GB RAM). i primarily use my desktop for writing, checking email, surfing the web and playing music/videos. i use my laptop for making music with logic -- i might open files in logic on my desktop but don't do recording on it.
I have a few questions:
-- any recommendations on affordable monitors? i need a cheap but good one. what connection is best for monitor?
-- i use my webcam often for skype and facetime. what do you use? are there still webcams that work with apple products like ichat or facetime? any that could be plugged into the USB3 port and affixed to top of monitor?
-- i have two external drives: firewire800 port for my time machine backup and a firewire400 port for my media HD with my iTunes library and videos. can i daisy chain those two drives and use the 800 port on the macmini?
-- worth getting an exernal dvd/cd burning drive? does that use USB?
thanks for any/any help and suggestions.

I recently (just weeks before the new mini came out) upgraded to the MiniServer & I am pleased with it. My old machine was a intel core duo 24" imac
For a monitor I went with a: Monitor - ASUS VH242H 24″ (23.6″ Viewable) Widescreen LCD Monitor about $170 on Amazon
For a webcam I got a: Rocketfish 2.0MP Widescreen HD 720p USB Webcam about $13 on amazon
I also upgraded the RAM (memory) to 16GB of 1333MHz DDR3 memory KomputerBay also on Amazon for about $55
You most likely will not be able to share the TimeMachine but, you should be able to share your iTunes library & movies

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