How to go about re-installing Lion?

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Hi guys,

Before I upgraded to Lion on my iMac (2009 i5, 4GB), Snow Leopard had begun to run really sluggishly. I hoped that the upgrade process to Lion would fix the problem but it's certainly no better. Compared to my Macbook, (a 2008 C2D), it feels sluggish, frequently beach balls when loading apps (and even trivial things like reloading webpages), and I can hear it constantly accessing the hard drive.

After some advice on here I verified the HD (no problems) and repaired disk permissions, but it hasn't improved things. If anyone has any more troubleshooting tips I'd appreciate it, but my second question is how people would re-install Lion?

Basically, I'd like to keep as much of my install in-tact as possible (settings, applications etc.) I'd read about an 'Archive and Reinstall' on SL but is such a process possible in Lion? I have a full Time Machine backup if that helps. I assume I'll have to install SL first, then upgrade, but wondered how that would work with my desire to maintain the things I mentioned above.

Any advice appreciated.
 
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