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I wouldn't get hung up on that too much - that's plenty free and 20% usage would not cause any performance degradation at all. Looking in Activity Monitor was more to see if something was using up 80%+ by itself without you being aware.

I can't believe Mountain Lion is the issue based on your symptoms. If you are close to an Apple Store and can be without it for a day or two you can book a Genius Bar appointment and take it in. It doesn't have to be under warranty and they'll not charge you unless there's something that needs...

Also trying an SMC reset would be worth a go. (Google it - it's straight forward enough)

It should still run fine which suggests there's something up with it. Are there other things running that are gobbling CPU or memory - check in activity monitor when it seems to be slow. Is it running hot - is the fan whizzing away at high speed?