A good initial setup should last around 2 years still playing at highish settings. I build the computer I'm on nearly two years ago, and am only now beginning to consider upgrading the core components. My X1900XT still kicks ass in most games, and it's definitely not time to upgrade yet. Here's a general idea of how often to upgrade:
Graphics Card: ~2 years
RAM: Depends on how much you get initially, but I'd say double it up every three years if you buy the "enthusiast standard" amount when you build.
Processor: A bit more touchy. If you're shopping in the sub-$200 range I'd upgrade after about 2-3 years, unless the processor line compatible with your motherboard gets discontinued, then upgrade whenever that happens. If you're spending a bit more, a processor should be good for 3-4 years (and probably the entire life of the computer really).
There's no need to upgrade as often as many users here do. I've seen a lot of kids do it, and then three years after their first build they decide PC gaming is too expensive and switch to consoles/old PC games. If you own a G80 (or later) card, there's no reason to have upgraded it yet.
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