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GD, you know how the Applecare deals works right? You are covered for all parts & labor w/in the first year; I've gathered from other posts that you probably live in OC, so if anything unbecoming happens to it, you can take it to the nearest Apple Store (2 in OC that I know of, South Coast Plaza, and Fashion Island), and they'll fix whatever needs to be fixed. A couple of months before the end of year 1, you will get a letter in the mail (provided you register the iMac upon startup) and they will try to sell you Applecare then. You can decide if you do need it then, after a whole year with it.
Since you're computer-savvy and probably will not have any need for tech spt calls, I would forego the AppleCare for now, but know that you have the option to pick it up w/in the year. You might get a feel for how service-prone your iMac (coupled with your usage) is by then. My friend had to take his roughly 8-month-old iMac in to replace some mechanism in the slot-load drive.
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