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I just completed a hard drive upgrade on my new 17" iMac. I took out the existing 160GB drive and put in a 250GB with 16MB cache. The OS is installing right now..
Let me tell you, this job takes some patience. Be sure to take your time and not drink too much coffee before you get started...
I'll report back with an Xbench report so you guys can see the performance impact if any...