Speaking of Ram, yes it is possible to have 3Gigs of Ram in a Late 2007 (Macmini 2,1) Mac Mini. So, if it's true that FCP can only address at maximum, 2.5 Gigs of Ram, then the Mac Mini is a viable editing platform for SD and maybe 2 streams of HD.
Although, multiclip editing would still be problematic unless you transcode I'm guessing.
Quick tip: Hold OPTION while you select the upper-left Apple menu and see "About This Mac" turn into "System Profiler..."
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