ESXi will run on SATA just fine; however, since it's basically a file; it will take a LOT more hits on it then you would see normally on a computer just running off a hard drive.
I currently have a test server at work running ESXi. It has 2 Opteron 265 processors and 8GB of ram; with 4 hard drives (1x 200gb, 3x 80gb) all sata, running off a Sil3114 controller card which is built into the TYAN motherboard it runs on. I have tried loading ESXi onto normal computers as well, with little success. Here's what i've found so far, in my testing.
#1 ESXi will run fine on normal consumer grade hardware with a few exceptions. Primarily, it does not like most on-board sata controllers (Intel's ICH series, or AMD). It seems to work well with most raid controllers out there however. Also, I would not recommend using a soft raid controller, either keep everything as seperate datastores, OR, invest in a good, decent Hardware Raid controller.
#2 You will want fast hard drives. If you can find them available at a decent price, go with SAS 15kRPM, or at least 10Ks. If you stick with sata, check out WD Enterprise/Caviar Black series Hard Drives.
#3 Memory, Memory, Memory, Memory, and more Memory. This is of upmost importance, and should not be undercut. I'm currently running 5 active servers on my ESXi box. It tends to consume around 2-3Ghz of processor (combined), and approximately 6GB of available memory. This is the biggest issue with using consumer grade (vs. enterprise/workstation) type equipment; it has much lower memory allowances. Even if you have a server that only needs 1GB of guest memory, it could consume much more then that. So you need tons, this will be the downfall of pricing this machine imho; depending on what you are looking to do.
#4 CPU is actually not usually all the worry, my machine has 4x 1.8Ghz processors, and ESXi actually considers them more in tandem then anything else, unlike the typical consideration of multiple threads, so really, while I'm starting to get to my memory threshold, i'm not even close on the processor side of things.
All that said now, if you are testing, you may want to see if you can find cheap server memory, and maybe outfit something a bit older like I did. In the end run, when I get my first production server running; I'm planning for a single quad core (with option for a 2nd), and a minimum of 32GB of ram, with the option to move it to 64GB. I will also be doing 10k SAS drives.