Hey MCX2012,
Did you try thunderbolt to thunderbolt?
Based on what I've found online, it was possible to use the late 2009 and mid 2010 iMacs as external displays for PC's if the PC and Mac were connected via mini displayport. The connection couldn't be made if the video signal was converted to mini displayport from another interface, like HDMI or DVI. But if the PC had an actual mini displayport output on its video card, then the iMac could be used as a Target Display.
However, it seems that the newer iMacs with thunderbolt support don't allow for this. Apple's website states that another Mac can be connected to the iMac's display via thunderbolt (and only thunderbolt; not mini displayport), but makes no mention of a PC being able to do the same.
Some posts by other users claim that this should be possible, but I'm not hopeful because I haven't read any success stories.
This is aggravating. I want to buy the new iMac and be able to switch between that computer and a PC, which I'm using as a 3D render machine.