Definitely one of my most productive upgrades has been more monitors, I run a 24" in portrait to my left, great for text editing and reading, centre I run a 24" in landscape, to the right I have a 20" attached to a different system and a 8 inch mimo under the center screen to throw media onto, the whole lot rigged to a powered sit/stand workstation :)
Downside is power consumption, upside is I don't have to use the light switch as it never goes dark in here...
Here's a bit from m$ on the benefits of multi-screen;
http://research.microsoft.com/en-us/news/features/vibe.aspx
I remember reading somewhere else that the results of m$'s study into the productivity benefits of larger or more screens did not hit an upper limit.
I also design websites now and again and it's great to just drag a page around and preview it on different screen sizes in 'reality', mapping the 'visible' window on a larger monitor is not quite the same thing.