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The whole thing with the Rosetta emulation is the emulation of Mac software that is not Universal Binary. It's the software that was written for the Power PC processors that needs to be translated for the Intel Processors on the new Macs.

Anything that has worked on previous Macs will work on the Intel Macs, however things that are not Universal Binary will have to be run through Rosetta where it'll just translate the code for the Intel Processor which will cause the program to run slower than it should. This is exactly why in a year the Macbook Pro will be great, because by that time everything that is scripted for the Power PC Processors will have moved on to the Intel Processors. So everything will use the MBP to it's full advantage.

Also, iLife 06 and so forth 06 programs by Mac are made for the Intel processors. So they'll work to their full potential but other things will have to be "emulated" through rosetta until their is a universal binary version available.
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