I have a mid-2007 24" iMac and have pondered some of these questions myself. 10.9 and 10.10 were poor choices for my machine, since they push the graphics card too hard and cause it to overheat UNLESS I run a fan control program to speed up the system fans. (This may also be due to a faulty heat pipe in the Mac.) From what I have read, you are stuck with Mac-specific MXM cards unless you hack the GPU BIOS or the driver/kext. Hacking the driver is probably the easiest, but if something happens to your OS you may be stuck without the ability to boot in safe mode.

However, making your Mac faster may be easier than that. Upgrading your RAM should help, but since you don't seem afraid of opening up your Mac an SSD would drastically improve your Mac's responsiveness. You might also be able to get a good boost by attaching a Firewire 800 SSD drive and booting off of that, though I personally haven't tried that approach.

Upgrading the CPU may be possible, but I think an upgrade to a quad may be impossible, since I don't think the iMac ever supported the Core 2 Quad. Plus the quad generates a lot more heat than a C2D. See here for more info:

http://www.everymac.com/systems/apple/imac/imac-aluminum-faq/imac-intel-aluminum-processor-upgrade-instructions.html

Hope this helps,

Eric

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