Based on what I've read (not confirmed for myself), Lion does more. Since it does more, it needs more Memory and it needs more CPU. With this in mind, Lion will run "slower" on an already sluggish iMac.
To help us recommend proper ways to "speed up" your old iMac, may I suggest you load up your usual apps / data files. When its gets sluggish, simply minimumize these items and load up Applications - Utilities -
Activity Monitor. Then, provide us screen shots of your
HD, System, Memory & CPU status screens. We need to see current details of its memory, current details of its CPU usage and its Disk Usage. Details point to the root cause.
If your computer is 2 GB of RAM, I'd suggest immediate upgrade to 4 GBs. IMO, SL runs best with 4 GBs of memory. Yes, it runs on 2 GBs. But when too many items are open at the same time, disk thrashing happens. Or, perhaps there's a stuck application that is "lugging down" your entire system? One cannot make proper corrective action recommendations until we're shown the Actvity Monitor print screens.
Note: If CPU, DSK, Memory are all good (re: NO Bottlenecks), I'd then focus on other reasons. For example, Disk Utility / Repair fixes @
http://support.apple.com/kb/ts1417 Or, perhaps re-setting permissions.
thanks.