Yes, you can set up screen sharing to control the Mini from the iMac. Be aware that a new Mac Mini, with the new Lion OS, is expected at any time -- perhaps even as soon as tomorrow (July 14).
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I've been doing this for a couple of years now. I can't remember the specific circumstances, but I found there were times when I really needed to have a monitor hooked up to the Mini -- one would be to setup its screen sharing -- and I ended up with a small monitor and kb and mouse connected to it. But I still mostly control it remotely. After that initial setup, you might be able to do without, or there may be a different way to go about it.
My Mac Mini is in a closet, no keyboard or monitor, connected to WiFi and an external drive only. I use a free app, Chicken of the VNC, to control it from my desktop Mac for maintenance such as software upgrades and cleaning up the music library. It is running as a server for a Logitech Transporter, so I use iPeng to control the server from an iPad, but you should be able to control an iTunes, Pure Music or Amarra interface remotely through a VNC app like Chicken of the VNC. The response time was a bit slow using 801g WiFi, but I find it quite adequate after upgrading to 801n.