MDS, slow Lion and the missing memory

Hi;
Updated to Lion a week ago, and apart of a couple apps that needed to be retired (PPC), here is my dilema:
The iMac (4gb) starts to slooow down to a crawl and I cannot use more than one app at a time. Open large files in Photoshop?, forget it. I got Safari on, and iStats shows free memory just dissapearing: from 4gb to 200megs (Same for PS and iTunes). Activity confirms it,...
I'm seeing a lot of posts with the same problem, no solution.
Anybody that could help?. Thanks

Lion has sophisticated new memory management. I don't know iStat understands it. You mentioned MDS but didn't discuss it. Run Activity Monitor and see which processes are using the CPU and "Real mem".

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