I know exactly what you mean - I was thinking the same thing when was making decision to start something on my own.

As of physical environment - stup below works perfectly for me: - 27'' double screen - proper headphones with noise cancellation and DVD's stack with my favorite music - proper ergonomic chair - big desk - non-membrane keyboard - big (0.5 liter min.) cup of something to drink (not necessary coffee since it usually makes it harder to focus)

As of tools I use: - operating system depends on work I do, however Linux Arch is my favorite - subversion as version control (old but still has something in it) - working with code - usually simple kwrite is just enough