Here's my podcasting setup: Windows XP SP2 (P4 3.2GHz, 1GB RAM, PCI Express mobo, SATA drives) running Cubase SX3. A Shure SM58 Beta into an E-MU 1820 audio breakout box. Monitored via Behringer headphone distribution amp.
All printed effects done in Cubase. Audio direct monitoring and headphone mix/effects done in the 1820 box. Zero latency. Yum.