Start by checking if you can run Snow Leopard:
Requirements for OS X 10.6 'Snow Leopard'
Whilst Apple withdrew Snow Leopard from their stores, you can still get it from Apple by calling 1-800-MY-APPLE (if you are in the USA) and they will supply the SL DVD for $20 for a single user, or $30 for a family pack that covers up to 5 Macs. You can also purchase the code to use to download Lion from the same number (Lion requires an Intel-based Mac with a Core 2 Duo, i3, i5, i7 or Xeon processor and 2GB of RAM, running the latest version of Snow Leopard), or you can purchase Mountain Lion from the App Store - if you can run that:
If you are outside the US call your national Apple Helpline:
If you're in the UK, use this number: 0871 508 4400
When you have installed it, run Software Update to download and install the latest updates for Snow Leopard.
OS 10.6 Snow Leopard is once again available from the Apple Store:
and in the UK:
but nobody knows for how long it will be available.
To use iCloud you have to upgrade all the way to Mountain Lion: