I'm using an Intel Core 2 CPU at 2.40GHz, 2GB RAM and an NVidia GeForce 7300GT. I use the latest betas of Chrome, Opera, Safari, Internet Explorer, and Firefox available precompiled for download (not directly from their repositories). My OS is the latest Windows 7 with all recent updates.
Although in practice most of the time advanced data structures and algorithms are not used, it is useful to study them and implement them yourself at least once. Dijkstra's algorithm, Prim's, Kruskal's, maximum flow, and other basic graph-operating algorithms are a good example.