Why am I having problems after downloading Lion?

My computer is constantly freezing up and getting the spinning beach ball. Also will not accept my passwords. I never had these problems until downloading Lion.

Please read this whole message before doing anything.
Boot in safe mode. The instructions provided by Apple are as follows:
Be sure your Mac is shut down.
Press the power button.
Immediately after you hear the startup tone, hold the Shift key. The Shift key should be held as soon as possible after the startup tone, but not before the tone.
Release the Shift key when you see the gray Apple icon and the progress indicator (looks like a spinning gear).
During startup, you will see "Safe Boot" on the login screen, which appears even if you normally log in automatically. You must know your login password in order to log in. If you’ve forgotten the password, you will need to reset it before you begin.
Safe mode is slower than normal, and some things won’t work at all, possibly including wireless networking.
Launch some applications and test. Same problems?
After testing, reboot as usual (i.e., not in safe mode.)

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