My sweet stable Imac7,1 + new Macbook Air Beachballs, needs SMC Resets, Browser 100 CPU...ideas?

Hi Everyone,
Imac7,1 10.5 patched fully (OS / Security / Java /Flash ) has been working like a system should for the past few years. No reboots needed. Always on. I basically use it to watch video, play audio, nothing CPU intensive. I was Internet Connection Sharing to one netbook, but as of last week added a new Macbook Air OS X 10.7.
If not that night after buying the Air, or the day after... The Imac beachballs permanently if I'm playing video files or using the internet, and the only way to get it back is an SMC reset. Anything other than an SMC reset just gets me to the prelogin wheel spin.
I've turned off Internet Connection Sharing, switched users, ran Disk Repair (only permissions on some java folders needed fixing), tried Safe Mode, looked in the logs for obvious things, but no luck yet.
Finally got around to watching the Activity Monitor when Firefox was playing back some Flash video and I actually saw the CPU above 100. Killing the process saved me from doing another reset
Any ideas what I should try? OS upgrade? Flash downgrade?
Is there anyway to prevent applications from using that much CPU and automatically shutting it down when it does?
Also curious if verbose logins, without the SMC reset, would give me any information...
Appreciate any suggestions. Thanks Appleworld.

Hello,
See if the Disk is issuing any S.M.A.R.T errors in Disk Utility...
http://docs.info.apple.com/article.html?path=DiskUtility/10.5/en/duh1896.html
Open Activity Monitor in Applications>Utilities, select All Processes & sort on CPU%, any indications there?
How much RAM & free space do you have also, click on the Memory & Disk Usage Tabs.
Open Console in Utilities & see if there are any clues or repeating messages when this happens.
In the Memory tab, are there a lot of Pageouts?

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