IMO, Mojave on that machine is a half-assed Mac experience. You've already encountered some of the issues with Mojave on that machine. You haven't mentioned the graphics anomalies, but they are there too.
I would highly recommend High Sierra or possibly Sierra. SSD and 8 GB RAM preferred. In contrast to Mojave, those OSes run near identically to fully supported machines.
If it were just for yourself for a hobby machine, that would be fine, but this is for your mom for her primary photo editing machine and business, and for Christmas no less.
Do not go with a Fusion or SSHD go pure SSD.
Agreed.
DO not go with a SATA III drive. Samsung in particular do not like old Macs.
Both the Samsung 840 EVO and 850 EVO (both SATA III) work fine in my 2009 MacBookPro5,5 which, just like the OP's iMac, has the Nvidia 9400M and Core 2 Duo 2.26 GHz. (In my case it is the P8400 but that is exactly the same performance as the P7550.)
BTW, RAW photo processing will be quite slow. In fact, even just surfing can be laggy at times, although it's usable.
Remarkably, the machine can handle multitasking as is, you can have 8 tabs open in Firefox, and also have LibreOffice running to write documents, in addition to having music playing in the background and the machine han't bogged down, even with only 4GB of RAM. Of course, that begs the question, if macOS can handle 8 Firefox tabs, 2 Office documents, and music running in the background and still be reasonably fast with only 4GB of RAM, and a Core 2 Duo 2.26GHz, then *why* on Earth is Windows 10 so slow on a computer with 6GB of RAM and a QX9300 Core-2-Extreme?
In my experience, such a CPU should feel faster in Windows 10 than the Core 2 Duo 2.26 GHz in macOS. That's no surprise though, since the QX9300 is more than twice as fast as the laptop oriented P7550. I had an Athlon X3 435 which is slower than that QX9300, and IMO it felt faster in Windows 10 than my Core 2 Duo 2.26 GHz in macOS (both machines endowed with SSD). The Athlon X3 435 wasn't fast by any means, but it was still noticeably faster than the Core 2 Duo. I eventually upgraded the Athlon to a Phenom X6 1055T though, just because I could. That machine now feels like a modern machine.
Passmark scores:
1500 - Core 2 Duo 2.26
2500 - Athlon X3 435
3500 - Core 2 Quad Q9300 (which is slower than Core 2 Extreme QX9300)
5000 - Phenom X6 1055T