The problem was the Hdd(5400 rpm) speed and the mac minis capacity(500gb). Not enough Storage space and the system lagged a bit when working with multiple programs simultaneously.
I replaced the stock Seagate Hdd with a Seagate Momentus Xt 500gb , and I also added a 2nd Seagate Momentus 750gb. I kept the stock Hdd for TimeMachine/miscellaneous files in an External iHdd. The Ram was also upgraded to 8gb from the Stock 2gb.
Total storage after upgrade=1.75 Tb. The system is very responsive now. I saved $$$ and had fun doing the upgrade myself. The kit & guide provided by iFixit was what made all this so easily possible!
Ps. Keep the rubber grommet attached to the cooling fan when removing, its just easier to reinstall that way.