Upgrading to 2gb RAM?

Am thinking about upgrading my iMac Core Duo 2ghz from 1gb to 2gb.
Is it worth it for me, will I notice performance increases?
I use iLife, Handbrake, I do video conversions using ffmpeg, Office under Rosetta. Am also planning to get Paralels soon to using a few windows programs.
Also, Apple want £240 for 2 x 1gb RAM chips, but other sites do the same spec for £80, why such a big diffrence with Apple, is it better stuff or are they milking the customers?

RAM upgrade is always a good idea. Parallels will take great advantage from 2gb as for iMovie and rosetta applications. If you plan to use Parallels I would say that 2gb is the bare minimum, so you can reserve 512mb to Windows and you still have plenty of ram to run mac applications.
Handbrake is a numbers-crunching application, so it is influenced by CPU speed, RAM wouldn't speed up the video conversion much.
As long as I understand you are not over-stressing your iMac (no pro applications such as final cut or photoshop), so probably you wouldn't notice a great performances increase immediately. You'll see the benefits when opening more than one application at time, and surely when you'll run parallels.
You can see how much ram you are using looking at "System Memory" section in "Activity Monitor". Use your mac as you normally do for a couple of hours, then open activity monitor and look at how much memory is allocated.
A low amount of "free memory" means that you are using almost all your available ram (and you should consider the upgrade), but what is more important is "Page ins/out". It shows the number of times your mac swapped information between ram and disk. Swapping is what makes your mac slow. You'll see two numbers divided by a "/". The one you should care about is the second one, that shows how many times you needed cached information. If that number is zero it means that you never swapped from disk back to ram, so probably you wouldn't need more ram.
Another important parameter is "Inactive memory", the higher the better. A low number means that you need more virtual memory (and so the bad bad swapping to disk).
Do not buy RAM from Apple Store! It's ridiculously over priced. For some reason Apple doesn't want you to buy ram from its store (probably they want you to add ram at BTO time). Have a look at crucial dot com instead.
if you need more info, please ask

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    Hello and Welcome to Apple Discussions. 
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