Hey Greg! I'm no Mac expert but I agree with getting the 2.0 and more RAM. I know you're going to keep this laptop for a long time so buy a little more than you think you need.
I also agree with getting Apple Care. My wife has an old Titanium Powerbook that served her very well and she bought Apple Care. She had used the service a little along the way but when the laptop went kaput, it really came in handy. Luckily it died on the night before the Apple Care expired! We brought it in to the Apple Store the next day and got it shipped off for repairs. Phew! That is another nice thing about Apple is that their warranty is factory supported unlike all of the warranties sold by places like Worst Buy and Circuit City. Naturally, she bought Apple Care again with her G5 Mac Pro.