I have an Intel motherboard (965OT), 6600 2.4 GHz Core2Duo processor, 4 GB RAM, nVidia 9500GT graphics card with 1 GB, Sound Blaster X-FI sound card, dual-layer DVD burner, 24" widescreen LCD monitor (a very cheap one though), and a solid, heavy, basic PS/2 keyboard I bought in 1999. My hard drives are pretty tiny by today's standards -- 80 GB and 160 GB -- but I archive unused stuff to DVD. Anything more than 80 GB and you really end up with a cluttered hard drive if you actually use it.
I also have a very nice power supply -- a bit expensive, but it gives reliable power AND it saves a bit of electricity! The "payoff period" (when I save enough electricity to pay for the power supply) might be 5 years though...Then again, it will probably last 5 years. I'll probably upgrade the rest of my hardware several times between now and then.
For those who might be aghast at my apparent un-frugality when it comes to my PC -- it's my work machine. I work at home as a web developer. I can't use a crappy PC to do programming and audio editing. Besides, a PC like mine could be had for $650 or so.
We are going cheap on our Internet though -- $45 a month for 512 Kbps up and down speed. To compare, DSL is usually AT LEAST 1.5 Mbps (3 times faster) and cable is often 3, 6, 9 or even 12 Mbps.
We live in a rural area, so we can't get cable or DSL.
We could pay $10/month more for TWICE the speed -- but we don't, to be frugal.
Matthew