I guess there is no iOS 4-lite for the slower/older iPhones.
Someone may have already talked about this, but I found that after upgrading to IOS 4 I had that slowdown and crashing. IOS 4.0.1 did not fix the problem.
This was all done from restore and backup.
I decided to do a re-instal but this time as a new phone, and the problems went away, been 5 days free of problems. I did the same thing to a second phone 3g and the problem also went way.
Not sure if those with problem will get the same result but its a try.
Here is what I did:
Put the phone into DFU (recovery) mode before doing this.
Then restore phone as you have done before, but when it ask you from backup or as a new phone, click on new phone and do it that way.
Here is how you can do it.
Step 1. Turn off your iPhone.
Step 2. Hold down the power and home button.
Step 3. When you see the Apple logo, release the power button but continue holding the home button down.
Step 4. Open iTunes and wait for it to tell you that its in restore mode.
Referenced from:
http://limitededitioniphone.com/how-to-put-the-iphone-into-dfu-mode/
Hope this help.