Indeed and yuppers, my system annihilated a dataset that my prof had been chewing on for many an hour (literally, he was on hour 15) on a single P4 w/ 512. I loaded 'er up on to a removable hdd I carry around with me called my laptop, unfurled it onto my "desktop machine", cracked up MATLAB, and 2.5 hours later I had the results he was looking for. He subsequently got me a beer. Good times, good times.
My suggestions:
Dual or (if you have the money/funding) quad Tyan board.
Dual Cores (waiting for them to drop down in price, it's going to happen, before I upgrade mine)
4 gigs. if you are serious, this is where you start
If you want some pretty stuff, I back nVidia over ATI based on the closed-source driver support. ATI's is not good at all (at least for anthing past a 9200, I believe that's the cutoff point for openGL support in the opensource driver)
If the datasets are large, look into a RAID array. If you'll be dual-booting or you need awesome performance and reliability, go with a hardware array. Otherwise, the software-based stuff also rocks out loud.
Enjoy the power... THE POWERRRRR! ahem...