iMac Accessories

Yeah I'd avoid Time Capsule as well and go Airport Extreme + USB external drive plugged into it. And yes, a drive plugged into Airport Extreme shows up on your network as a storage drive. It will operate at the wifi speed between your Mac and the Airport Extreme, not the speed between the AE and your outside internet connection.

http://www.twelvesouth.com/product/backpack-for-imac - a shelf for your iMac. http://eshop.macsales.com/shop/firewire/on-the-go for an external hard drive.

I'd caution against the Time Capsule. A simple 1 TB external drive is so much better for backups and other data storage. Do you need wifi? The Airport Express is a must-have.

https://www.apple.com/magictrackpad/ with http://hengedocks.com/products/clique-magic-trackpad-and-wireless-keyboard-dock

You http://osxdaily.com/2013/05/01/use-single-hard-drive-time-machine-and-file-storage/ set up any old external hard drive with two partitions, one for Time Machine and the other for storage.

Thanks for the suggestions! I never considered a shelf (sounds like a great idea) or a trackpad. I will look into those. I know I will get an external Hard Drive, so thanks for the suggestion of making two partitions (one for Time Machine and one for other storage). Thanks for the link. To be honest, I have no idea if I need the Time Capsule or Airport Express (or Extreme). This iMac will be hard wired into my cable modem. I have an MacBook Air that I bought last year for work that I use in my house via wifi. I also have an iPhone that I use at my house on my wifi network, so I am not sure if Airport Express/Extreme (or even Time Capsule) will assist me? I have the lowest/slowest (most basic) Internet plan with my cable modem (and it suits my needs perfectly), and I know these devices won't increase my speed, so do you guys recommend me getting an Express or Extreme? Do I need one?

https://discussions.apple.com/thread/4806276?start=0&tstart=0. If you're arty at all, a drawing tablet of some kind might be fun.

For external hard drives I like the http://www.amazon.com/exec/obidos/ASIN/B00E83X9P8/metafilter-20/ref=nosim/. The key thing is they are 2.5" USB drives, powered straight off the USB, no need for a separate power adapter. I wouldn't bother with Firewire in the age of USB 3 although in full disclosure, a Firewire drive might be a little faster than the USB 2 your refurbished iMac is probably limited to.

The Magic TrackPad is awesome. I have a MBP, but often use it in clamshell with a TB display and using a mouse was miserable. I was so happy when they released a standalone trackpage. The GF uses a backpack to hold a TB SSD that she edits photos on and takes back and forth to school/work. Fall back to OWC enclosures with FW/USB if you're not jumping on the TB bandwagon. Time Capsule is a waste, a regular external drive is a better deal. I personally don't use Airport Extreme because I have 2x Unifi APs, but that's a bit overkill for most people. Crashplan for off-site backups.