“Newbies” are those wanting to do basic editing of home movies, “Indies” users are independent film makers like us. These are my terms, not theirs.
CPU
Newbie: Pentium MMX 233 Mhz
Indie: P III 500+ Mhz
RAM
Newbie: 64-128Mb (depends on editing software)
Indie: 384–768Mb
CD ROM
Newbie: Any
Indie: CD-RW or DVD-RAM
Capture Card
Newbie: Any IEEE 1394 (FireWire, I.Link)
Indie: IEEE 1394 SCSI for adding dedicated HD
Graphics Card
Newbie: PCI w/8Mb RAM
Indie: AGP w/32Mb RAM + 2nd output for monitor
Hard Drive
Newbie: Ultra DMA/33 10-15Gb free space
Indie: Second dedicated Ultra DMA/66 or a Fast/wide SCSI 25-40Gb
Monitor
Newbie: 17”
Indie: 19-21”
Sound Card
Newbie: Any Sound Blaster
Indie: Card w/advanced MIDI, positional audio, & digital in/out
Backup Tape Drive for archiving
Newbie: None
Indie: 20-40Gb/tape
For software, they debated the relative ease or difficulty versus power of features for: Ulead VideoStudio 4, Studio DC10 (& other Manufacturer ware), MGI Videowave III, Adobe Premiere 5.1 (&RT), and Avid Cinema. I'm betting the favorites around here are Premiere & Avid
One magazine's opinion. 
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Jeff F - Magic and FX
Amazing the Masses

And I know what you mean - I am salivating over upgrades to my system, but a bill always seems to pop up right when I want to buy a new component. My curent motherboard will only support 384 Megs of SDRAM, but that will change when I upgrade it.
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Jeff F - Magic and FX
Amazing the Masses
piii 866
512MB RAM
30 gig ide hard drive (for system)
u2w lvd atto scsi card
18 gig cheetah 10000rpm lvd drive X2
CDRW
LS120
Elsa Gloria II Video Card
Pinnacle dc1000 w/dv option
Sound blaster live platinum
21 viewsonic monitor
You would not believe the quality difference between it and my old system.
pii400 w dc10+ 256mb etc....
System DOES make a big difference, however I think I had more fun with my old cruddy system! I was less of a perfectionist. 
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Of all the things I've lost I miss my mind the most.
-Ozzy Osborne
(via Hackers)
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Jeff F - Moderator
Magic and FX
Amazing the Masses
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"May the Force be with you."
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