I was advised to deny access to allow the new version to access to my keychain items and that the possibility of a virus existed and to run an anti-viral program based out of .mac (to which I don't have an account).
Who or what "advised" you do do all that?
There is no anti-malware program based out of .Mac (at least not for many years). And the service is not even called .Mac anymore. It's MobileMe.
So wherever that advice came from, it is probably very old.
Although there are some Trojan malware out there for Mac OS X (relatively rare), there are no known viruses. You can check for malware using a freeware scanning program, ClamXav.
http://www.clamxav.com/
There are many other reason your iMac G5 may be running slow, all more likely than a Mac OS X "virus."
Here are some general things you should do or check:
Insufficient free space - Make sure your hard drive (the startup volume) is not getting too full. It should have at least 15% of its capacity as free space, and even more would be better. Mac OS X uses free space for its hidden virtual memory swap files, and it cannot operate efficiently once free space becomes low and/or fragmented into small pieces. If your iMac runs better immediately after a restart, but gets slower through use, this is likely to be the problem.
Disk data corruption - To check for this, you need to start up from your Mac OS X installation disc. When you get to Installer's first screen, go up to the menu bar. Under
Utilities, select to run Disk Utility. Use +Repair Disk+ on your startup drive. Note if any errors are reported. If there are errors, note if Disk Utility reports them being repaired successfully. Quit Disk Utility and restart normally.
Reset PRAM - It is generally a good idea to try this when trouble-shooting.
http://support.apple.com/kb/HT1379
Run +Repair Disk Permissions+ in Disk Utility, which you said was already performed. You should run the
Repair instead of the
Verify.
It is possible that there is a hardware problem with your hard drive that is causing this problem, so you should back up your personal data as soon as possible.
If the issue persists, please post back.