Trying to update to Lion and computer keeps freezing.

I have purchased Lion and it has "downloaded" but when I press the icon so I can actually follow through on the change-over, I get a rainbow wheel which after a few seconds freezes (the whole screen freezes). I have to hold the power in order to shut it down; not sure what to do. Any help would be nice, many thanks!

Before trying to install Lion with the installer, it would be a good idea to navigate to Disk Utility and repair your boot drive. Repair the drive until there is nothing left to repair. Also check that SMART is verified.
If there are errors that Disk Utility cannot repair, you will need to address these before installing Lion. A stronger utility like Disk warrior may be able to repair them, or possibly you may want to replace your hard drive if it has started to go south.
It's always a good idea to immediately repair your drive if you have had to force quit.
It's just a guess, but I suspect there is something about your hard drive that Lion doesn't like, and this is why you are getting the freeze.
Good luck!

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