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Upgrading/adding on to a new 21.5 inch iMac

Update:11-30Source: network consolidation
I'm looking at buying a 21.5" iMac to replace the aging PowerPC I have.
My questions:
-How do I connect it with my existing home theatre? (Panasonic 42-inch plasma TV, model TH-42PX75U....and Sony DVD player/amp DAV-HD265)?
-My existing computer has an older version of Word on it (Word 2004)...would it be OK for me to continue to use that w/the new iMac?
-Also re existing computer (PowerMac G3 with a G4 processor & 576 MB of RAM)...this will work as an auxilary hard drive, won't it?)

The Best Answer

If your PowerPC G3 has a G4 cpu, it is not a G3, it is a PPC G4.
Your TV has an HDMI port. The easiest way the connect the 21.5" to the TV would be with a mini-DispayPort to HDMI adapter. However, the m-DP does not carry an audio signal and I do not see an easy way to plug in a separate audio cable to your TV, so I recommend this solution from Monoprice which will combine the digital audio and the m-DP video into one HDMI stream, plus a simple male to male HDMI cable;
MS products do not migrate well for some folks so I would install the MS Word directly on the new iMac with the original install disks.
The G4 in Target Disk Mode is not the best external drive for a long term basis. Either sell it and buy a good external HDD for backups, or take the drive out and put it in a new ext drive case.