so lets begin with hardware:
Cpu:
choose anything you want, if pentium avoid celeron...
Motherboard:
AGP8x (at least), Award Bios, avaliability to disable ACPI and onboard devices. USB, SATA, PATA133 Onboard, 5x pci slot, 1x agp slot.
Ram:
Try to fill all free memory slots with same type and serie of memory sticks. this can little bit upgrade system performance. I dont know how and why but it helped much when i changed two mixed sticks for three brand new. If Hi-End construction use at least 1,5 Gb, more than 2gb is not necessary, but could be useful.
Disks:
Buy at least two disks. First shall be "System Disk" on Primary Master. best performance was with 20gb ata 100 disks with fat32, larger disks like 80gb can cause loss of performance due to limitations of FAT32. Second one shall be "data disk". Put it on Primary Slave, or on any other type of connection including SCSI, SATA, PATA 133. If you are using more "data disks" you can use RAID.
PCI slots:
Fill them all. There are several possibilities. High quality lan card, sound card, TV tuner, Radio Tuner, disk controllers, Physical Ramdrives (quite rare),
CD /dvd roms:
If you need to change CDs (if watching multiple movies) install two devices... One of them can be cd/dvd writer.
Graphics, Net, Multimedia:
Feel free to use any upgrade. Graphics are limited by drivers, but there is still large spectrum of drivers and devices. I like Ati Radeon 9800

If Cpu is computers brain Graphic card is its heart. Most of its performance is affected by it.
SCSI:
if you want to use multiple disks or scanners this is good choice.
TV Tuner, Radio Tuner:
I like multifunctionality... Many devices of these type are already available, and also can be used in win98 without any limitations.
System Settings:
Why two harddisks and ram over 1GB?
There are three basic types of operations which are giving multiple tasks to disk.
1. Swapfile or virtual ram.
2. Data which are readed for application (such as game).
3. System - Loading drivers, and some "invisible" system operations at background.
If we want to use simple 3d game we are giving multiple tasks to single harddisks. Because Harddisk is the slowest perifery in PC (except external media periferies like cd roms and diskettes) there is necessary to split these tasks. If system is installed on "system disk" and game is running from "data disk" we are on good way - two disks are solving two types of tasks separately and this is giving some performance.
Also if we put swapfile on Ramdisk (for instance 512mb ramdrive created by XMSDSK) we have created most fastest type of drive for quick access - 10 times faster than acessing swapfile located on harddisk.
1gb of classical ram is limit which can be crossed by using of ramdisk tools such as XMSDSK. You have to keep 512-1024Mb of as classical ram and rest can be used as ramdisk.
Why possibility to disable ACPI?
it can mess up system. i shall take a look at this. i have to examine one possible tweak in bios which dont have this possibility.
Rest is depending on drivers which you shall use, and system tweaks you shall use.