Hi Dave,
We are a small newly established development studio in Swansea, South Wales called FTS Studios. We are a 4 man team currently developing 2 games for release via Steam over the next few months and although we work from an office, our equipment and software doesn't differ hugely from anything you'd find in the keen home gamers machine: all running XP Pro, 2-4 gig of ram, fast but not cutting edge dual core and dx 9 graphics. We are using Cinema 4D for animation and modelling, Cubase Studio 4 for sound development, Photoshop for textures and touching up and our lone programmer is using Visual C++. All easily obtainable software and hardware and everything you will need to get started. The only other thing you may want to consider is getting dual-screens set up as the more destktop space abailabe for development the better. Hope this helps! Chris