Thank you for the links. It does seem like it's going to run a minimum of $800 just for the processor anywhere I look. What worries me about that is still having the liquid cooled system and the many issues I have be reading about lately with them.
As a designer, actually I have had LCD monitors for over 4 years now at every job I have had. I also use an LCD at home. I actually prefer them. I know there are color differences, but they have come such a long way that I'd hate to go back to a CRT again, so big and bulky. Again, this is just my personal preference.
I do love my PowerMac which why I am disappointed with the issues I've had with it. Not little issues either, the most expensive issues. Plus, with the new OS Snow Leopard possibly dropping the PowerPC line, I'd rather be looking ahead versus treading water with another used PowerMac, even if I could save and reuse all the extras I've put into it.
The more research I do, the more I am leaning towards the iMac 3.06GHz model and max it out to 4GB with aftermarket RAM. As long as I can get 1-2 working years out of it, I can then hand it down to my wife and then make another serious investment into a new MacPro.
I know you can't expand the iMac, other than adding more RAM, possibly putting in a larger HD. Although I have a 160GB in my G5 that I use maybe half of. I also have a LaCie 250GB external where I store most all of my things, so a 500GB internal on the iMac would be plenty for me right now.
As she is a very basic user (internet, music, word processing, etc.) she would still have plenty of computer after it being only 2 years old. She uses my 6 year old Ti PowerBook G4 now and it suits her just fine. (+mini rant here+...how is it my laptop which has traveled many miles has lasted twice as long as my more expensive chained to a desk in a controlled environment machine!?)
As she is finishing school working on her RN degree, I think the iMac is the best case scenario for now (very limited budget) and then when we can save up the extra cash, I'll just get a whole new system. Plus I'll be able to use her to get a student discount and save a few bucks and get a free iPod touch!
As for the Mac Genius, he told me it would cost $85 to run diagnostics as I was out of warranty. He ended up not running any as he told me based on everything I had done and the results I had gotten from my own hardware test, it would only indicate the same results there and doing the re-calibration would not fix anything.