I am not sure that the graphics card can support dual screen mode in anything but mirror mode. There should be an option in your display settings to change from mirror mode to extended desktop mode.
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"Fix it 'til it Breaks."
Jacob - EiC & Director of Technology Mac Pro Quad 2.66 - 4GB RAM 160 GB SATA RAID 1 - 650 GB Storage Quad 19" Widescreen LCDs Accessorized to the Hilt
ok, I get you now. The answer is no. Your iMac uses a Rage 128 graphics card from ATI that can not support dual monitors in any way. It simply isn't capable. However, many models do support dual monitors with a fairly simple hack. This includes all Radeon based eMacs and iBooks as well as all new models of the G5 iMac.
Sorry I forgot to mention this, if all you want to do is MIRROR your screen, then of course you can do that without any sort of additional software. This hack is for extending your desktop across two screens.
Thank you sorry bout this i am not the greatest mac user in the world but i'm wanting to learn. My damn school refuses to support the Macs we have using the ict equipment.