Assuming that your iMac is no longer under warranty or AppleCare , you could save yourself some cash and open up your iMac and remove/replace the RAM yourself.
If you have never done any Mac upgrades yourself before, it might be a wiser decision to take it to an authorized apple dealer/repair center. I am not sure if the Apple store will replace RAM in older Macs or not. If they do RAM upgrades and repairs on older Macs, it might be more expensive having the Apple Store do these than an authorized Apple dealer/repair center.
If you want to try and do this yourself, it is not that difficult a procedure.
You just need to be dilligent and careful. Protect your screen before starting to take apart your iMac and purchase an anti-static wrist strap, clipping it to any substantial metal part inside your iMac once your get the bottom of it open.
Here's a link to the procedure
http://www.xlr8yourmac.com/systems/imacg4/imacg4takeapart.html
Here's the specs you need for your RAM stick
PC2700 184 pin SDRAM