Based on Macworld Magazine December edition,
iMac 1.8 Ghz has in average 5% performance edge over 1.6 Ghz. The test applications are Phtoshop, Cimema 4D, Compressor, iMovie, iTunes.
As expected, the frame rates of Unreal Tournament are the same on both machines due to the same GPU.
If you already have external DVD drive, I say that 1.6 Ghz is a better buy for you.
More details (from the magazine)
Speedmark 3.3 average: 150 (1.6) vs. 162 (1.8)
Photoshop 8.0: 2:02 (1.6) vs 1:51 (1.8)
Cinema 4D XL 8.5 Render: 3:24 (1.6) vs. 3:02 (1.8)
Compressor MPEG2 Encoding: 11:17 (1.6) vs. 10:00 (1.8)
iMovie 4.0.1 Render: 0:42 (1.6) vs. 0:40 (1.8)
iTunes 4.6 MP3 Encoding: 2:06 (1.6) vs. 1:52 (1.8)
Unreal Tournament avg. framerate: 33.5 (1.6) vs. 33.6 (1.8)