Can a 2009 iMac11,1 be upgraded to Lion?

I have a 2009 iMac that I have tried previously to upgrade to Lion.  I remember that it was severly unsuccessful.  I do not remember why.  Before I try again, I wanted to ask the community about their experiences with the upgrade.  My hardware data is as follows:
Model Name:          iMac
  Model Identifier:          iMac11,1
  Processor Name:          Intel Core i7
  Processor Speed:          2.8 GHz
  Number Of Processors:          1
  Total Number Of Cores:          4
  L2 Cache (per core):          256 KB
  L3 Cache:          8 MB
  Memory:          8 GB
  Processor Interconnect Speed:          4.8 GT/s
  Boot ROM Version:          IM111.0034.B02
  SMC Version (system):          1.54f36
I do remember that I tried both an upgrade and a fresh install, but both were unsuccessful.  Problem is that there are games and software that are coming out now that are only compatible with 10.7.  It is time to get up to date, but either I get an dupgrade working or I buy a new iMac.  Buying one just for the upgrade, seems a little counter customer centric.

CyberKen wrote:
 For a business running on Mac, this is a little painful.
Very painful, it was even worse as Apple wasn't releasing security updates for older operating systems.
A few days after 10.7 was released there was a root cert update for 10.7 and 10.6, but 10.5 and 10.4 didn't get it or any Java updates.
A year later there is a 600,00 strong Mac botnet making hackers over $10,000 a day in ad revenue, just a few days ago on May 15 Apple finally released a update for 10.5 Intel machines only. PPC is finished, they likely dumped all the boxes into the dumpster a long time ago.
However I think they learned their lesson about ignoring older OS X versions, and other things as they are doing a better job now of being proactive. The next version I suspect is being heavily tested on older hardware before release unlike 10.7 which was just dumped on the public.
So if your on 10.6 you can be likely be safe now leaving it as such for quite some time as Apple has changed their tune a little, rather have you come back as a hardware customer rather than as a hate filled guy who just had his bank accounts robbed and looking to sue.

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