Intel imac slowed to a crawl.

I unwittingly scanned a 1.5 gb tiff file to my desktop. I edited it in photoshop, closed it, reopened it, then things slowed way down. I tried to move it to a folder but the computer is so unresponsive it's hard to do anything. It runs fine on an external boot drive. I've reset the PRAM, repaired disk permissions, repaired the disk (it showed no problems) to no avail. It's a 2 TB seagate drive with 1.3 TB free space, I've got 4GB of memory installed.  At times I get this message: "Your Mac OS X Start up disc has no more space available for application memory."
Any ideas how to proceed?
Thanks,
David

Your iMac can take up to 6 GBs of RAM.
Maximum Memory
6.0 GB (Actual) 4.0 GB (Apple)
Memory Slots
2 - 200-pin PC2-6400 (800MHz) DDR2 SO-DIMM
If you just recently upgraded to OS X 10.7 Lion, newer versions of OS X use a lot more CPU, GPU, RAM and hard drive resources.
4 GBs of RAM simply isn't enough.
The Application Memory error you were getting is telling you that your iMac does not have enough Internal RAM resources to run additonal Appications.
What version of Phoroshop is this?
Having this file of your desktop probably did slow down things.
And if you were working on this in Photoshop, a 1.5 GB PS  file really turns into about 3 times that size when you open it and start working on it from within PS.
How much space is left on the external drive?
In PS Preferences you can setup scratch disks for PS to use for storing temp data when working with PS files.
You could set your primary scratch disk for the external drive and set a secondary scratch disk as your internal drive.
This can help to speed up both PS and iMac somewhat when working with PS files.
You can purchase reliable Mac RAM from online Mac RAM vendors Crucial memory or OWC(macsales).

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