Which 21.5 iMac to buy???

I am going to buy a new iMac today. My choices are the $1199 or the $1499 version. I really don't care that much about the larger hard drive in the $1499 version. My question is whether I would get much benefit out of the ATI Radeon card. For the most part, I am not a gamer. The only game I run with any frequentcy is Flight Simulator. I probably will be running FS with Win7 and Bootcamp. Will the base NVIDIA card do a good job with FS? I notice that the higher end video card says HD. What's that about?
The $300 difference doesn't mean that much to me, but on the other hand, if I'm not going to get much benefit out of it, I would rather spend the $300 on beer and pleasure.
NVIDIA GeForce 9400M graphics
ATI Radeon HD 4670 256MB
Thanks for any input in helping me make this decision.

Roger - Thanks. I'm leaning towards your recommendation to go with the 3.06ghz Core Duo and buy the 4GB RAM upgrade for about $90 from OWC.
Right now I use FSX on a 3-4 year old Toshiba laptop with an integrated graphics card and a 1.6ghz processor. I know I will see some dramatic improvements with the new iMac. I have loaded Windows 7 beta on my MacBook Pro and tried FSX on that -- works pretty well. I need to see if I can get Windows 7 through my daughter in college for $29 before the beta runs out -- not sure if that $29 deal is a full version or an upgrade. I've never bought Windows for any Mac so I need to find a full version (not upgrade).
Thanks again for your input.

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