Mac OS 10.5.8 help

Hi there,
I have a Mac OS X 10.5.8, 2.66 GHz Intel Core, 2GB 1067 MHz DDR3. 
Great desktop for me at home but needs to be upgraded.  Can I have advice on what steps/software I need to go to next OS. 
Is Ram expensive to increase?  I do a fair bit of photoshop work using photos taken in RAW format and lately the system is running increasingly slow - the check of my capacity has told me I have used 242.07GB of my 297.77GB hard drive and I dont know how that happened - all my photos are stored on an external drive.  I downloaded mackeeper but it has not helped much.
I do not know of service reps for Apple in Invercargill, New Zealand so Im hoping to learn how to deal with the mac myself - as much as I can without scaring myself 
Thanks in advance to any help
And yes I am an Apple newbie, I love it - esp how after having had this sytem for nearly18 months and never having any problems.  But its getting sad and slow and I cant afford a new set up.
Julie

Uhhg, you must get rid of MacKeeper, but don't yse theor un-installer, it makes it worse...
http://applehelpwriter.com/2011/09/21/how-to-uninstall-mackeeper-malware/
https://discussions.apple.com/message/18117889#18117889#18117889
The good news is you can have 8 GB of RAM, which I highly recommend for later OSX versions, & it's pretty easy to install...
http://eshop.macsales.com/shop/memory/iMac/DDR3_2009
http://eshop.macsales.com/installvideos/imac_mid_2007_mem/
Snow Leopard/10.6.x Requirements...
General requirements
   * Mac computer with an Intel processor
    * 1GB of memory (I say 4GB at least)
    * 5GB of available disk space (I say 30GB at least)
    * DVD drive for installation
    * Some features require a compatible Internet service provider; fees may apply.
    * Some features require Apple’s MobileMe service; fees and terms apply.
Which apps work with Mac OS X 10.6?...
http://snowleopard.wikidot.com/
It looks like they might still have it...
http://store.apple.com/us/product/MC573Z/A?fnode=MTY1NDAzOA
From there once updated to 10.6.8, you could if you want goto Lion/10.7...
Lion/101.7 System requirements
    •    x86-64 processor (Macs with an Intel Core 2 Duo, Intel Core i3, Intel Core i5, Intel Core i7, or Xeon processor.)
    •    At least 2GB of memory[14]
    •    Latest version of Mac OS X Snow Leopard (10.6.8), with the Mac App Store installed
    •    At least 4GB of disk space for downloading[14]
Like Snow Leopard, Lion does not support PowerPC-based Macs (e.g., Power Macs, PowerBooks, iBooks, iMacs (G3-G5), eMacs).
Lion also does not support 32-bit Intel Core Duo or Core Solo based Macs. Rosetta is no longer available in Lion, which means Lion no longer supports PowerPC applications.
http://en.wikipedia.org/wiki/Mac_OS_X_Lion#System_requirements
http://www.apple.com/macosx/how-to-buy/
What applications are not compatible with Mac OS X 10.7 "Lion"?
http://ow.ly/5Iz09
http://roaringapps.com/apps:table

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