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Alfresco tends to be I/O bound, so it's best to have a high bandwidth, low latency disk subsystem for Alfresco to use (eg. RAID or a SAN) as well as a high bandwidth, low latency connection to the relational database that Alfresco is configured to use. Larger RAM can help here, to give the OS more room for caches, but most modern CPUs (dual core, 2+Ghz etc.) are more than enough for Alfresco (Alfresco doesn't perform very many computationally expensive operations - most operations are disk and database I/O intensive instead).
Generally Alfresco is much heavier on the CPU than the DB - adding a faster CPU/more cores will generally give you a lot better performance increase than changing the DB.
I have assumed that Alfresco performance comes down to hibernate + database performance
1. is there anything special about the way Alfresco uses hibernate which affects general principles applicable to hibernate based apps?
2. which database performs best (MySQL, Postgres etc) with Alfresco and/or hibernate?
3. if you start with an affordable system (eg quad core Xeon, 4 GB RAM, a couple of 15K SAS drives), where is the bottleneck likely to be?