Metech Offers to Recycle Your Mac
Rosyna writes "Apple now allows the general public to recycle their Apple branded computers. It only costs thirty US dollars, too. The dumpster is still cheaper. More details at Apple's page and Metech's page."
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I question not only why you would recycle a newer Mac, buy why you would recycle any Apple machine at all. An Apple II, circa 1976, goes for $50-$100 on eBay! If you're actually paying someone to take your machine, there's somthing seriously wrong.
"Reality is just a convenient measure of complexity" -Alvy Ray Smith
If you want to run a headless iMac, you could just pop the drive from it into another (similar) Mac, throw a VNC Server app in the startup menu, make sure it launches on boot, and put the drive back in the iMac. Simple enough.
Also, I read a site a while back about someone who had a similar problem to you - an iMac (don't remember the rev) with a dead CRT - he installed a video card in it somehow. Try googling for it.
Every cloud has a silver lining (except for the mushroom shaped ones, which have a lining of Iridium & Strontium 90)
City of Austin, Texas will recycle any computer for free if you take it to their recycling center. Macs do have amazing longetivity, but I've seen a lot of old (1984-90) Macs at garage sales, and they are just not selling. I've upgraded a number of PPC models, though. I just found a new Sonnet 260 MHz G3 upgrade at a garage sale for my 7100/66AV.