What is the recommended machine configuration?

We are planning to dedicate a new Pentium II/400 MHz with Red Hat Linux
exclusively to our Postgres database. The database size is several
hundred megs. I have been told that the more RAM I have for the machine,

the faster I'll be able to access the data. Does anyone have any
recommendations on the amount of RAM that would be optimal? If you had
to set up the ideal system to run a Postgres database of, let's say, 1
Gig in size (spread across 10 tables), how would you allocate it in
terms of processor, OS, RAM, hard disk space, etc.?

Thanks.
-Tony Reina