I bought this mini to replace a 1.42 GHz G4 mini that just couldn't handle my 6,000+ pictures in iPhoto anymore. It took 1-2 minutes before I could do anything in iPhoto after I opened it.
When I got this machine, I immediately replaced the two 512 MB sticks with two 1 GB sticks that I bought online for about $35 each (much cheaper than Apple). I also had an existing 200GB external drive which is the same form factor as the mini and sits underneath it in addition to a Belkin USB hub (same form factor as well), since you can never have enough USB 2.0 ports.
The machine is great and much faster than my old Power PC mini. iPhoto opens very quickly and I can immediately browse through all my film rolls, even with other programs, such as Safari and Eudora, running. I am glad I waited until Apple changed from the Core Duo to the Core 2 Duo, although I am not sure how much difference there is between the newer and older Intel mini.
I also love the included remote for iLife. It's nice to be able to browse through iTunes, iPhoto, etc. without the keyboard/mouse.
There are rumors that Apple will discontinue this little machine soon, but I hope they don't as it is a great buy for anyone who already has a nice monitor/LCD. I would like to get a 24" iMac but they are too expensive and I would much rather just buy a Mac mini and hook it up to a 20" or 24" external LCD since I don't like all-in-one devices (printers or computers).
Update (11/2011): This Mac mini is still going strong. I have since upgraded the HDD to a 250 GB, 320 GB and recently a 1 TB drive. The upgrades went smootly and I even installed Bootcamp and Windows 7 (needed for work) onto a 300 GB partition without any problems.
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