in reply to
On Creating an Effective Work Environment
I think your question has been answered quite well already but here are my thoughts in no particular order.
Z: A development team needs to be able to communicate easily. All members of the development team should be in the same area. Having 1 person even an extra ten feet away from the rest of the team will affect their morale and productivity.
Y: Developers need an area where they can get together and work without disrupting others or being disrupted by others. Being able to paste the walls with information/notes/ideas is key in this area.
X: Give the developers enough room to work. It can be a major pain when 2 people have to work at the same desk for a while and the person at the next desk has to move around to accomodate them.
W: Outside noises that cannot be blocked out are a major pain. I can't count the number of times I have had to listen to sales reps all day long.
V: Flexible break schedules. It may not sound important but given the choice between 2 fifteen minute breaks and 1 thirty minute break I will take the thirty minute break almost every time.
U: Headphones are a godsend. It doesn't matter how well a team gets along, at some point they will all need some noise to distract them back into a quality working mode.