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I did the same thing on my 2007 iMAC 2.8GHZ 6GB RAM, after I replaced the dead original HD with a 500 GB SSD.
Works great!! Won't be replacing it for several years now, as I never do any heavy lifting with it.
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Are these things easy to pop in? It looks like 500GB for about $150.
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Not too hard, but the first time is intimidating... do your research and follow instructions.
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Yeah, skip the ram, go straight to the SSD.
Yup pretty simple. Sure, go slow the first time, but now that I have done mine a few times, 10 mintues tops.
Its my daughters machine now with a 3 GB ram and 120 GB SSD, still running 10.6.8, but it flys. Full screen hulu, netflix, whatever and it runs like a champ.
If you dont want to pop it open -- even booting from a SSD via USB 2 was pretty quick. Thats how her machine ran until I felt like doing the transplant internally.
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i'm running a 2008 iMac with only 4 GB of RAM, but a boot SSD has helped reduce beachballs.