EXPERT RESPONSE
(Disclaimer: Hardware is not my specialty, but I will answer the best I can.)
Obviously there are a lot of factors in selecting equipment, most notably of course will be what you are willing to spend. The requirements for the .NET 2 framework are relatively small (128MB RAM, 280MB Disk), but add a database and you will quickly use up your system resources. The minimum I would suggest is that you get a server-class machine, pre-installed with Win Server 2003 or XP Pro. Most servers come with plenty of hard disk, but memory will be very important (and relatively cheap to add) so make sure you get 2GB or more.
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