Yes, you can connect your iMac with that TV.
You have two options for connecting the iMac to that TV: VGA and HDMI. For the former, you'll need a mini-DVI to VGA adapter, and for the latter you'll need a mini-DVI to DVI adapter along with a DVI to HDMI cable. Both adapters can be found at the Apple Store (both online and the brick and mortar) for less than $20.
However, neither of the above options include audio, for which you'll need a separate cable going out from the headphone output on your iMac. I'll look a bit more into the details of the TV to give you an answer for the audio question.
Edit: Looks like the only way to input sound is via the RCA connectors (they're red and white). This means you'll need a 3.5" mini-jack to RCA adapter to hook up sound. However, I'm not sure whether this would work with either the HDMI or VGA connectors.