I was just curious if anybody edits using an imac g5 all in one or if you have to use a g5 tower?

Thanks,
Matt

Works fine.

it can be done...

I did for many years. I don't know what the latest OS and version of FCS that you can use (I guess I shouldn't assume you are using Final Cut?) but yes it can work very well.
I am currently finding myself using my 27" iMac for most of my editing since it has such a nice screen size.

If you are using a version of FC BEFORE version 7, then you should, assuming you are referring to Apple software. How it runs will depend on your system configuration and capabilities of you hardware.

If you want to run FC version 7, then you need a mac that runs on Intel processor(s).

Jonathan