I've recently dropped the money on a new desktop & 'done a Gordy' as it were - simplified like hell!
I went from this in December (though this isn't as cluttered as it's been!);
To this in the new Year (crap photo I know, need to take better). It's wonderful having deskspace to spread out notes/textbooks/folders/etc.;
Beige machine is my firewall (500MHz K6-2, 32MiB, m0n0wall) with a 24-port AT switch (complete overkill now!), black machine is my new desktop (E2140, 2GiB, Archlinux). I've kept a CRT for watching movies/anime from the bed (where the speakers point). The piano black finish on the Sonata III picks up fingerprints so bad, but I've only just finished tweaking & haven't had time to polish off.
Where's the Mac I hear you cry? Well, because it's exam season atm I don't have any lectures/labs/etc to go to so my MacBook has sat closed for several weeks now...
I keep a history of my setups (going back to August 2006)
here if anybody wants to watch it evolve
Edit - dark;