24" iMac Issues- Hangs Up Consistently

I have an early 2008 24". This thing has served me flawlessly until I first installed Mountain Lion. It's a 3.2Ghz, 4GB RAM, with now, a 120 GB SSD, with 100 GB free at this time. My only issue ever, was that my HDD failed a couple of years ago. Once I installed ML, I started having the expected issues with program compatibility and what not.
Disk Utility is returning no errors. Activity monitor is almost completely idle, meaning that no program is taking any more than 1/10% or so. I had no issues with this thing until I decided to upgrade to ML since they started phasing out the programs for Snow Leopard. The first time I installed ML, I noticed it was slower. I've switched back and fourth to SL at least three times, but I get the exact same behavior. I've also changed from HDD to SSD a few months ago, thinking that would help, but yeilded no performance increase.
I run a constant 5Mb/s or so network speed and have tried various networks, so the connection isn't the issue. The main issue seems to be when I click a different web page, or click to work within an application: I get the beachball for 15, 30 or 45 seconds. Not every time, but a lot of the time. It's the same behavior no matter, SL or ML. Shortly after wiping the system, with no connection to my other drives, it will start this. It's as though Apple has preordained this behavior. Ever since the inception of ML, I have had nothing but problems. Do I need to buy the latest model or something? If I had another $3k to spend, I'd experiment, but my machine has been flawless, so I expect it's a "compatibility" issue. Please help me.
-Jason Blackwell

Mountain Lion is fully compatible with 2008 iMacs, I suspect either corrupt download that resulted in a corrupt install or a hardware fault. However you may have a hardware fault that may need to be professionally diagnosed. To see if there is a hardware issue run Apple Hardware Test in Extended mode at least 3x back to back. AHT isn't 100% reliable but it finds errors they are correct, if it doesn't that only means you need to take it into an Apple Store or AASP to be profesionally diagnosed.
Good luck.

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    Having completed two recent updates - Airport Extreme Update 2007-001 and Security Update 2007-001, I now find that my Imac 'hangs' every time an application tries to acces & use my iSight camera. Happens in iChat and Photobooth for example. Is also not user-specific (logged on as another user with same result). I have already tried rebooting (necessary to shutdown each time via the power button as no other mouse or keystrokes respond), and also downloaded these updates and re-installed them to no avail. Any ideas before I try an OSX re-install?? As far as I am aware iSight was working perfectly prior to these updates - regular use via iChat/Skype etc. I admit to recently having also reviewed and modified a few system preferences (not sure which ones or even if these would have had such a disastrous effect).
    Oh for a 'system restore' button!! (sorry - ex PC user!!) Roll on Leopard!
    No , seriously any help would be much appreciated.
    OSX is 10.4.4
    iChat is 3.1.6 (v441)

    I would re-order this list
    1) you can remove your system level cache file /Library/Caches
    Use something like MacJanitor from this FAQ as it will clean them to the same Extent running the Cron Scripts do if the computer is On and Awake at the required times.
    2) reset your PRAM -- http://docs.info.apple.com/article.html?artnum=2238
    3) update your OS. Your notes say you are running 10.4.4. Current version is 10.4.8. The OS update from 10.4.7 to 10.4.8 is rather substantial and resolved several issues.
    Combo Updates are here Make sure you pick the right one.
    4) After installing ALL the Apple udpates I would use Disk Utility to repair your disk permissions.
    5) f that fails then reset your PMU/SMC/SMU depending on what kind of computer you have.
    MacBook and MacBook Pro version It links to others at the top of the article.
    6) Only after careful consideration and asking more here
    ... an archive and install would be the next way to go -- http://docs.info.apple.com/article.html?artnum=107120
    5:07 PM Monday; January 29, 2007

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