I recently tried to build a workstation for development at home that I hoped would at least be competitive with my server at work. My reasoning was that a workstation being hit by a single developer might keep up with a server class system being pounded by 400 users. I chose a P4 3.2, 1 gig of ram, and a pair 160Gb Hitachis running in RAID 0. It wasn't even close. Of course, the server I benchmarked against had 4 gigs of ram, dual Xeons, 3 10Ks in RAID 5 for OS and swap, a pair of 10Ks in RAID 1 for the transaction log, and 6 10Ks running RAID 1+0 for the data. The database in question is 5+ gigs.
There's a query I run monthly to calculate sales tax due at the zip code level for a few thousand zips. The workstation can crunch this out in 180 seconds on the first run, 120 seconds once the data is cached. The server trounces this, 30 seconds flat on the first run. I think this represents the extreme. Smaller queries feel like they execute in a timely manner on the workstation.
I'm sure your situation is unique, but I gave up trying to replicate server level speed at home. It wound up being tremendously faster just to VPN back to the office and hit the server rather than running SQL locally. If you must run local, then my best advice is not to break the bank in search of speed.
MS SQL Server is certainly CPU hungry (I am just assuming Microsoft SQL here), despite many generalized statements on the web that databases are not, so don't skimp here. If there was a difference between a good 7200 rpm drive and a Raptor, I bet you'd have to have a stop watch to see it. Raid 0 with 2 drives gained nothing, nothing at all in the dozens of benchmarks I ran, using queries of all sizes. I was really suprised by this, but so be it. If you want to splurge somewhere, do it on RAM. The first query may be slow due to disk access, but SQL caches everything after the first load, so RAM is definitely your friend. If you are just running queries, then one disk is fine. If you are doing lots of inserts and updates, the get a cheap second drive just for the transaction log, that's a good performance add on.