to a new iMac
You want iDVD.
If you are still within your 15 day return period. Call Apple they will sent out iDVD at no charge. (There are no realistic substitutes.)
Nicely explain that you may return the computer without iDVD. That usually does the trick. You MUST speak to a senior advisor to get a free copy. The first tier people cannot do it.
408-996-1010
800-692-7753
If that doesn't work you can purchase iLife 11 (includes iDVD) on disk.
IDVD is a wonderful piece of software and well worth the low cost of $40.
http://www.amazon.com/Apple-MC623Z-A-iLife-VERSION/dp/B003XKRZES/ref=sr_1_1?ie=U
http://dealmac.com/lw/artclick.html?1,527850,1872219
So if I'm reading this correctly, there is no way I can get iDVD on my new iMac?
Your new iMac is tested for compatibility with iDVD. It is easy to install from the iLife 11 DISK.
I have to use a third party tool (Roxio Toast?) to create a DVD?
Yes, there are programs that will put a movie on a DVD. I have tried most of the other substitutes including Toast, Burn, and others. None of them come anywhere near the ease-of-use and power of iDVD. IDVD is specifically designed to work with iMovie.
With iDVD you can easily and quickly create DVDs with menus and graphics almost on the level of what Hollywood can do.