Of course, RAM is always very important for a large development environment like Visual Studio, especially the 2010 version and especially if you're using the Ultimate edition which includes such fairly memory intensive features as IntelliTrace and the Architecture and Modelling Diagrams.
However, one of the main things that is often overlooked, but can make a big difference to the overall performance of Visual Studio, is Hard-Drive Speed.
Scott Guthrie (Microsoft's Corporate Vice President of the .NET Developer Platform) wrote a very interesting article about this exact subject.
It's a few years old, and was written around the time of Visual Studio 2005, however, it is still very relevant today since the way that Visual Studio continues to work (specifically the way the compilers work) has not changed so much over that time.
Scott writes:
People often ask me at conferences for
PC hardware recommendations.
Specifically - "what type of machine
do you recommend I get for doing
development with Visual Studio?"
and/or "your laptop seems really fast,
what type is it?"
Some of my recommendations on this
topic are fairly standard and obvious:
Ideally you want to get a duel core or
better CPU. I also always recommend
getting at least 2GB or more of RAM.
The recommendation I make that often
seems to take people a little by
surprise is to make sure you always
get the fastest possible hard-drive
when buying a new machine - and where
necessary trade off purchasing
additional CPU processor speed in
favor of investing in a faster disk
instead.
Also:
Why does hard drive speed matter?
Multi-core CPUs on machines have gotten fast enough over the past few years that in most >common application scenarios you don't usually end up blocking on available processor >capacity in your machine.
What you are much more likely to block on is the Seek and I/O speed capacity with which >your computer accesses your hard drive. If you are using an application that needs to >read/write a lot of files, it is not atypical for your CPU processor utilization to be >really low - since the application might be spending most of its time just waiting for >the disk operations to complete.
When you are doing development with Visual Studio you end up reading/writing a lot of >files, and spend a large amount of time doing disk I/O activity. Large projects and >solutions might have hundreds (or thousands) of source files (including images, css, >pages, user controls, etc). When you open a project Visual Studio needs to read and >parse all source files in it so as to provide intellisense. When you are enlisted in >source control and check out a file you are updating files and timestamps on disk. When >you do a compilation of a solution, Visual Studio will check for updated assemblies from >multiple disk path locations, write out multiple new assemblies to disk when the >compilation is done, as well as persist .pdb debugger symbol files on disk with them (all >as separate file save operations). When you attach a debugger to a process (the default >behavior when you press F5 to run an application), Visual Studio then needs to search and >load the debugger symbols of all assemblies and DLLs for the application so as to setup >breakpoints.
If you have a slow hard-drive, Visual Studio will end up being blocked as it waits for it >to complete these read/write operations - which can really slow down your overall >development experience.
You can read the full article here:
Tip/Trick: Hard Drive Speed and Visual Studio Performance