>Hi,
>
>I keep thinking that testing a VFP application with SQL Server back end residing on the same PC (my notebook) may not provide adequate and thorough testing of the application. Therefore, I am thinking (again) of buying a separate PC box to service as host for SQL Server. My question is, what is the minimum PC spec I need for this purpose? And will Win 7 OS be adequate or I have to spring for Server 2003 or Server 2008?

Depends of the version you want to use.
Check this:
http://msdn.microsoft.com/en-us/library/ms143506.aspx