Mid June 2010 i3 and 16Gb RAM Issues
Well myself personally am having all sorts of dilemmas since upgrading to 10.7. Some issues have been resolved and others not. Been on the phone the Apple Developers having a cry lol as I've managed to locate quite a few major bugs.
Any late model iMac from mid 2010 onwards can support 16Gb RAM, mine does and worked with SL 10.6.8. It's things like Pro-Tools that are only 32bit Apps that cannot access pass 4Gb RAM even if you do have have large memory.
As for an upgrade vs clean install, there is no real difference except you may have issues with MAIL and a few other things, other wise I would stick to an Archive Install.
I tried the Clean Install to see wether my issues would go away, but unfortunately not to be.
Also as I pointed out to Apple, a possible oversight they may not have foreseen is user configurations that could cause issues. Myself personally have graphics tablets, recording gear etc hanging off the iMac, maybe that's a factor whom knows.
Also if you notice with SL 10.6.8 the system overheads to run the system was 1.08Gb and with Lion 10.7 it's 3.8Gb
Whopping difference. Now I am wondering wether the Virtual Page Swap File may be causing issues.
I Guess time will tell, just blinking annoying I've had to go back to 10.6.8 as Pro-Tools HD is not Lion Compatible