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I'm considering getting a new iMac and am wondering about upgrading the video card to the ATI Radeon HD 4670. Gaming would obviously benefit from the upgraded video capabilities but what else?

Video Editing (iMovie vs Final Cut Express/Pro)? Image Editing? Viewing movies (720p vs 1080p)? Converting videos to a different format? Anything else?

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Everything openCL-aware. You can consider this as an investment for the future.

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