Upgrade or get a new Mac?

Hey all.
I could use some help here. I probably already know what I need to do, but here's what's going on (my apologies if this topic has been addressed elsewhere before):
My iMac--see the model info included at the bottom of my post--has been a trooper, but I think I need a new computer. However, after skimming over the post listings regarding upgrades and the like and looking at some buying guides online, all the info is kind of overwhelming (and I've put off making substantial upgrades and/or getting a new computer mainly for that reason). What is comes down to is: I simply don't know where to begin when it comes to my own computer.
Here are the main issues I currently have with my iMac:
--It gets hot; that is, I think the fan needs replacing.
--I'm on dial-up, and would need an OS upgrade in order to be cable/dsl ready.
--And, b/c I'm on dial-up, I can't enjoy using the web at home like I'd like to. It's tooooo sloooooooow.
--I can't come out of sleep.
--I can't use the "reboot" option anymore. In order for the little green light to come on--indicating the screen is turning on--my computer has to be shut down in order for it to start-up correctly.
--The computer is HEAVY (I blame that huge, build-in monitor) and I don't have a car, so getting things fixed/maintained has always been an issue. (I don't like shelling out $$ for computer house calls.)
--I've tried many ways around it, but when I try sending documents from my computer to friends, they can't read them. And, I cannot read Word documents I receive. (An AppleWorks/Word incompatability?)
There's probably more, but I'm at my work computer for now, so my "problem child" isn't right in front of me.
I know I'm LONG overdue an upgrade, but at this point, it seems that simply getting a new computer might simply be the best way to go, especially with all the new bells and whistles available. I'm a student (returned to it after several years away from it), grad school is probably on the horizon, I won't be getting a car any time soon and need some hand-holding while dealing with computer issues as they arise.
SO, my dilemma is--new computer or upgrade? In the end, I'd probably spend the same amout of money either way, but going "new" seems easier. But, maybe I'm missing something here. I don't require a TON of options--I'm mainly use the internet, e-mail, and word processor (sending and receiving files often, esp. as a student). And, having an iPod at some point might be fun.
Thoughts? If you need me to clarify something, let me know. (Wow, long post ...)
Thanks (in advance),
Erin

Actually the Blueberry Rev C or D. iMac G3 was sold throughout 1999 and did contain a fan. In Oct 99 the slot loaders arrived and the fan was gone (now that was nice I went for 3 years with two different fanless Macs). It's entirely possible old stock of the Rev D was still on clearance in to early 2000 too. 
The Fan is Apple Part (922-3566).
ErinC,
As you're running 8.6 at the moment you'll have a bit of a learning curve when you sit in front of a modern Mac - but you won't regret spending the money one bit.
mrtotes

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