Can my 2007 iMac be upgraded to run Leopard and Adobe CS5?

I have an iMac I purchased in 2007, along with all new software. I now find I need to upgrade my software, but cannot also afford to buy a new computer. It's ridiculous that a 3 year old computer is obsolete. Especially at these prices.
Rant finished. Please help. Can I add memory, ram, a new video card? I'm a designer... not a mechanic. Apple just wants me to buy a new machine - they offer no help at all.
Specs on iMac below.
Model Name: iMac
Model Identifier: iMac5,1
Processor Name: Intel Core 2 Duo
Processor Speed: 2 GHz
Number Of Processors: 1
Total Number Of Cores: 2
L2 Cache (per processor): 4 MB
Memory: 2 GB
Bus Speed: 667 MHz
Boot ROM Version: IM51.0090.B09
SMC Version: 1.8f2
Thank you for any help!!!

Hi ivyleaf
You can run either Leopard or Snow Leopard on your iMac.
+(I ran Leopard on my 4,1 Core Duo for over a year and now run Snow Leopard without issue)+
Apple no longer sells or updates Leopard, so if you want Leopard you will have to find a black Retail Leopard Upgrade Disk on E-Bay or somewhere like that.
2GB is enough for OS X, but I suggest that you upgrade to 4GB of RAM for CS5
http://eshop.macsales.com/item/Other%20World%20Computing/5300DDR2S4GP/
then buy a Retail Snow Leopard Upgrade Disk for $29 and run that.
http://store.apple.com/us/product/MC573Z/A?fnode=MTY1NDAzOA&mco=MTc1MTEzNjY
Dennis

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