This is basically what I run, a G5 with Unity and then connect to the Mini using Chicken of the VNC. And then build iphone apps through xcode from the G5. The mini is basically my stereo, media player connected to a TV but doubles nicely for building iphone apps. From Aras' quote above, it sounds as though this set-up will work fine. VNC to the mini then connect back to the shared folder on the G5 with the project in it. Saves you having to connect a screen/keyboard to the mini - or get up!