Should I get the new mac mini?

Hi all
I am confused and would appreciate some advice. My current mac mini which is a late 2006 model it has 1.83 Ghz Intel Core Duo 1GB mem and 80 GIG HD and super drive, running 10.56, and a usb external 250 GIG HD.
I have the option of buying the new mac mini the:
120GB Mac mini (MB463*/A) 320GB Mac mini (MB464*/A)
Processor 2.0GHz Intel Core 2 Duo
for an extra £169 which is $237.38 as I can sell my current mac mini for £305. I am wanting to know should I buy the new mac mini?
My needs for my mac mini is using Iworks, Safari, watching dvd's, listening to music and burning dvd's and music. I never really play any games at all.
I have apple care until March 2010 too. So I am just wondering if my current mac mini is going well for me. Shall i update for the extra features, or for my usage for what i use it for, my mac, shall i stay and just keep my current mac mini?
Thanks in advance

by saying "media library," I meant the space where you keep your media files. Often case, people including myself keep all media files (movies, musics, etc) on an external hard dives.
time machine is a good, but it's not mirroring. by mirroring, you your computer sees two identical drives as one drive (not combined capacity, but as if there was only one of them connected to the machine). The computer writes exact same files to both drives so if one drive physically fails, your media files are safe in the other drive.
anyway, mirroring is only one of the many solutions to protect your files, and there is no singe solution that works perfectly and completely fail safe.
so my point is, instead of upgrading you mini, spend cash on storage space and its protections like backup drive and/or UPS (google for "Uninterruptible Power Supply") and such.

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