DBoyer, the max Ram is indeed 8GB (also in Mactracker) for your iMac 2009 20".
Easy to upgrade (contrary to the latest iMac models). And cheap, see the OWC and Crucial sites, only the exact specs, important !.
The SSD will absolutely be a stunning improvement, the connection is Sata 3Gpbs, all new Sata SSDs are 6Gbps but downwards compatible; It is relatively easy to install. You buy the SSD a well known brand to be sure, put it in a housing with USB connector, connect it, Partition/Format it (1 partition) with GUID PartitionTable OS X Extended (journaled). Then download CarbonCopyCloner, the trial version will do, and make a clone to the new disk including the RecoveryPartition (CCC will ask you for it). then shutdown the mac, start it while holding the Alt/option key, select the connected SSD to start from, and start, when every works OK, shutdown. Switch the inside disk with the SSD. Start and be surprised...
Note 1: on iFixit and OWC there are instructions for opening and removing the disk
Note 2: Do not install the Trim command (a lot of people will tell you that it is necesary for SSD lifetime and speed, it is not), because in contrary with an Apple branded SSD the Trim command may cause issues for the (inside) SSD controller (the Apple branded have a specially adapted Controller)
Note 3: in the use of the SSD let there be more free space than is necessary for normal HDDs, I advice 25+ GB (that is to speedy up the 'Garbage Collection' on the SSD).
Note 4: if your 2009 iMac is in good condition, I certainly think its worth it...
Lex
Edit:
Note 5: the best is just switch the disks. The speed will be 3Gbps, because that is the speed your bus-connector can handle. Of course, as Glenn says, buy a good brand SSD: Crucial, OWC, Samsung 850 (not 840), Sandisk. The same goes for the Ram: only a good brand (Crucial, OWC).
Note 6: I have done this a lot of times in MacbookPros, and used the CDreader slot to put the existing harddisk in, but that harddisk is old (for a HD) and thus I put in a new HD, 1or 2 TB, in lately)
Note 7: the SSDs and HDs should be the Sata 2.5" versions.
Lex
Edit:
Note 8: I use CCC as a backup clone from the SSD to HDD inside: this is a real backup, and you can start from it when there is an issue with the main startup disk.