My system performance has tanked since upgrading to OS X Lion

My iMac was a beast of a machine when I was running Snow Leopard. I finally decided to upgrade to Lion and am now regretting it.  Now my system freezes all the time and it takes forever to open most software apps such as FCP X, Compressor or Motion. (Native Apple products)
Once opened, the performance of the apps is horrible.  Safari has also taken quite a hit in performance as well.
My system configuration:
Mac OS X Version 10.7.3
Processor 2.66 Ghz Intel Core i5
Memory 12 GB 1067 MHz DDR3
I'm not sure what to do now.  Does anyone have any suggestions?

I suggest booting into safe mode.  If performance issues
go away, then you have some third party driver or app
being loaded at boot that is not compatible with Lion 
(which is quite often the case).  Then you need to start the
process of identifying the culprit.
Also, check activity monitor for for any processes that
may be using up excessive CPU.
Also, make sure you have all drivers for any devices
updated and update all software to latest versions.
Another issue is that Spotlight reindexes your hard
drives after the update which can take quite a while
depending on how big, how many, and how many
files are on them.

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