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You have a lot of options, only one of which is a new machine. Assuming that you have sufficient RAM and HD capacity, your current machine can run MacOS 9.2.2 or even MacOS X 10.4.
The iMac Dual Core is a wonderful machine. Intel-based Macs are great for those who want the latest and greatest. That is not you. At the same time you buy a new computer, you will also have to buy all new software. None of your MacOS 8 software will work on the Intel-based machine.
If you have the money to make the jump and are willing to take the time, then go ahead. Buy the new computer. Your friend will be only too happy to help you. Just make sure that he understands that it is your computer and not his.
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