What is the rotating rainbow icon?

So for some reason 90% of the time I go to check my email when I try to click on any thing on the page this rotating rainbow pops up and freezes my computer. The only way to get un frozen is to go back to my home page or if its really bad I have to sometimes turn off my computer and start all over again. What is that icon and what can I do to stop it from happening? 

Go to: System Preferences / Accounts / Login Items and check to see how many Application are set to open at Login/Startup.
If you have a lot, remove most or all and see if that helps.
Likewise, look at your Dock and check to see how many App's are open? Open App's will have a small blue light on below them. Also note that unlike older OS X versions, Lion wants to keeps all the App's open that you were using in the last session if you don't uncheck the "Keep Apps open" box when you shutdown.
Also note: that while 4GB is a fair amount of RAM, it is not enough to smoothly run OS X and tons of other App's all at the same time.

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