You can see my setup here: http://jseliger.com/2010/05/02/writing-space-2010 . You can see a 24" iMac (the screen space is, to my mind, more valuable than the processor speed) with an external monitor and a Kinesis Advantage). [EDIT: Note also the desk -- a Maxon 1000 series with a Humanscale keyboard tray. It's a good combination because you can adjust the tray to keep your arms at a 90 degree angle and the desk is really solid.)
My family's space is here: http://blog.seliger.com/2008/06/15/tools-of-the-trade%E2%80%... .