How do I do this? what kind of hardware (system requirements and network routers) are needed? I can get static IP and can upload about 640k....

Use IIS or apache. See the post marked "setting up FTP server"

so you dont need a cisco router or anything special?

Computer AMD Intel Harddrive Video Card Software CPU

No you do not, however if you already access the internet via a router you will have to enable port forwarding or put your computer on a DMZ.

I suggest apache. What kind of traffic will you be getting?
Put particuliar attention on the security front if you're going to make it "widely known/public"!

Asus P4P800DX, P4C 2.6ghz@3.25ghz, 2X512 OCZ PC4000 3-4-4-8, MSI 6800Ultra stock, 2X30gig Raid0