Second - to get the most out of a system such as a Mac Pro running Windows, you are probably going to need to get Windows Xp Pro x64 edition, and I am not 100% certain on how well supported the Mac Pro hardware will be by the x64 edition (or how well Photoshop will run on it - is there a 64 bit version of Photoshop ?).
No, there isn't a "64-bit" version of Photoshop yet.
But the extra RAM will still help, since it can be used for the other applications, file system cache etc.
Third if you do stick with Mac OS X, then there is a possibility that there will be a performance hit associated with it compared to Windows x64 - as the current version does not completely support 64 bit natively.
There will also be a performance hit under Mac OS X with Photoshop; it isn't available as a universal binary yet, but that will almost certainly be rectified with CS3 this winter/spring.
Of course the other options are a) buying a decent case/psu etc and then going the DIY continual upgrade path with a PC. It may be less stable etc, but it does decrease the cost of continually upgrading
... as well as probably decreasing the initial cost ...
or buying good value consumer level gear (probably from someone like dell) with lots of ram and intel core duo 2 processor. Either option would work and would be less costly than the workstation option(s).
I think I'd recommend this option if there is a limited budget.
In general, the extra bang you get is far from proportional with the extra money you spend.
Stability is, as you mention, a possible issue, but if the computer is assembled carefully (e.g. using anti-static wrist straps properly) with known-good components, then it can work well for many years.
"Many years" means more than two, because as everybody knows, one computer year is the equivalent of 30 years for humans.
My positively ancient self-built box from 2002 is working quite nicely, although I've maxed out the RAM at 1.5 GiB, which is a bit too little for my tastes. However, it's trivial to upgrade the motherboard/CPU/memory/graphics card combination and get something that's significantly better for less than USD 1000.
One quick question (which just occurred to me) - what sort of a performance increase have people (in general) noticed (if any) on machines running SATA drives compared to machines running PATA drives?
In itself, virtually none.
The inherent advantages of SATA vs. PATA are almost negligible performance-wise for desktop use.
IIRC Photoshop uses the hard disk as well as the RAM for some of the stuff that it does, so presumably faster hard disks would increase the performance of Photoshop....
Simplification:
Most PATA and SATA disks from the same manufacturer have equivalent performance.
No PATA or SATA disks outperform their interfaces yet.
Yes, it is possible -- and not even very difficult -- to create a computer setup where SATA disks outperform PATA disks, but the performance benefits are most clear in server loads when using SATA-II and NCQ, or when using multiple disks if you were stupid enough to use both the master and slave ports on PATA.
The best benefits come from a far handier physical interface, and better interface performance scalability, IMO.