The benefit of running a firewall specific box is that there are no other services running that could be broken into.
A spare P200 with 128 MB of RAM is great for firewall and routing. If you don't plan on doing a lot of translation you could probably do with less RAM. As usual more is better.
Smoothwall, is nice because it is a very secure platform with several nice features packaged. VPN, Web-Proxy, SSH maintenance, easily readable logs, IP forwarding, etc.
For doubling up on security you could (should) run a firewall on your boxen behind the primary firewall. You can never be too paranoid about security.