In addition to taking the wraps off the long-awaited video iPod, Apple on Wednesday introduced a thinner iMac that features a built-in iSight camera and a new application called Photo Booth, which uses the iSight to snap shots and manipulate them with Photoshop-like effects. The company said that the new iMac is up to half an inch thinner and 15% lighter than its predecessor.

The new computer also comes with an iPod shuffle-like remote control that interfaces with it through software called Front Row, enabling users to watch videos, slideshows and more from up to 30 feet away. iTunes 6, which Apple also debuted on Wednesday, allows users to purchase not only music videos but also Pixar short films and episodes from such TV shows as Lost and Desperate Housewives, all of which can be watched on a computer in addition to the new video iPod.

Apple also bumped up the speed of the new iMacs, which will be available next week. The low end 17-inch, US$1,299 model features a 1.9GHz processor with a 633MHz frontside bus and 512K of L2 cache. It ships with 512MB of DDR2 SDRAM, an 8X Double-Layer SuperDrive, a 160GB hard drive, an ATI Raden X600 Pro video card with 128MB DDR RAM and built-in AirPort Extreme and Bluetooth 2.0+EDR wireless connectivity. Appleis new Mighty Mouse is also now standard issue.

The high end $1,699 model differs by offering a 2.1GHz processor, a 20-inch display and a 250GB hard drive. Build-to-order options in both new iMacs include up to 2.5GB of RAM, 250GB and 500GB hard drives and the Apple Wireless Keyboard and Mouse.

The new iMac with remote control