Here's my setup. Since I tend to use a lot of tools, I like to keep them all in front of me. Also, since I use dual 22" Samsung LCD monitors, I have plenty of desktop space.
All my email and browser programs are located on another computer, networked to my main server ... and located on a third monitor mounted above these two LCDs. That way I can send email, surf the web or run other programs while Photoshop is rendering a big image ... or while I'm rendering transition effects in video footage.
