I've seen a handful of iMacs up on freecycle here, this is the first one I was quick enough to snag. There was another one yesterday but the guy listed it as being taken without even getting back to me which I'm a bit ticked off about but you win some, you lose some. In case you think I'm being greedy, I never intended to keep the second one. My housemate is after one so I was requesting it more for him than myself. I'll keep looking, maybe even post a WANTED thread later.

256MB SO-DIMMs are a bit of a mystery bag...the problem is the early iMacs are a bit finicky about 256MB SO-DIMMs, in that with some, they will only address the first 128MB of the SO-DIMM.
For the record, 128MB ones aren't that hard to find or expensive...Microseconds, in Sydney sells 'em for $20 a piece...or at least they were back in April when i got my iMac stuff there. Good people to deal with.

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Yeah, a pair of 128MB SODIMMs seems to be the way to go. I'm not really aiming for OS X compatibility so 256MB should be fine.