So it's a big thumbs-up for the new iMac, but Apple clearly has a bit of a problem with the Mac Mini.

In fact, it was widely rumoured the Mini was going to be discontinued when Apple released the new iMac. In the end, though, the Mini got a reprieve - and a modest upgrade, too.

The Mac Mini was originally designed to lure owners of old PCs into switching over to Apple products for the first time, saving money by allowing them to use the monitor and other peripherals that came with their old PC (the Mini is sold on its own, without even a mouse).

That's not a bad idea, but the problem from Apple's point of view is that the low-cost Mini could also end up cannibalising sales of the flagship iMac.

So the company has always tended to limit the Mini's potential by intentionally giving it a relatively modest specification. That obviously doesn't do much for sales and explains all the rumours about its imminent demise.

This latest upgrade is a case in point, as the Mini is only now getting the Intel Core 2 Duo processor that most desktop systems have been using for the past year. The model reviewed here is the more expensive of the two available, priced at £499 with a 2GHz processor, 1GB of memory and a rather modest 120GB hard disk.

The hard disk is a bit small, but overall performance is certainly strong enough for tasks such as surfing the web, running office software and even a bit of video editing.

Its compact design also manages to squeeze in an eight-speed DVD burner, four USB2 ports, a Firewire port for connecting a digital camcorder, and both 802.11g and Bluetooth wireless networking.

And, like all new Mac models, it comes complete with Apple's iLife '08 software suite pre-installed, so you've got all the software you'll need for working with digital photographs, music tracks and videos.

Its only major weakness is a feeble Intel GMA 950 integrated graphics chip, which effectively rules out playing any decent 3D games (not that there are many of those for the Mac, anyway). There's also a less expensive model available, which runs at 1.83GHz, but has a measly 80GB hard disk and just a CD rewriter drive, rather than a DVD burner.

To be fair, the specification of the £499 model is more than adequate for most home users (apart from gamers, of course). It's just that for £499 these days, you can buy a complete PC system with a monitor and a much larger hard disk. Just remember, though, that the PC will most likely be about 10 times the size of the Mac Mini.

Ultimately, the Mini's main selling point is the simple fact that it is so small. It measures about 6in wide and deep, and just 2.5in high. This makes it ideal for homes or offices where space is at a premium. We also like the fact that it's virtually silent when running.

Don't underestimate the technical ingenuity required to cram a complete computer system into such a small unit. And with the bundled Front Row media centre software and remote control, it's a great little entertainment solution for your front room.

If price is your main priority, there are certainly cheaper systems availa ble. However, if you want a compact, quiet computer that provides a good software bundle, then the Mac Mini is well worth considering.