Hi.
I used to build prototype boards on a 0.1" grid eurocard board using point to point wiring, and with some care have done successful graphics controller, video, and processor systems at up to about 60MHz. It takes a lot of careful decoupling (Hugo always says you can tell a board I've designed, there are so many decoupling capacitors it keeps working for five minutes after you turn off the power
), but it can be done.
I've also implemented a multichannel SVGA controller on a double-sided PCB with no ground plane, which worked fairly well once I added extra thickness to the power traces with soldered-on wire.
At the RF end of the scale, it's perfectly possible to go to many gigahertz on double-sided PCBs, assuming you both know more or less what you're doing and use the right PCB material. IE, the standard FR4 board (fiberglass) isn't really ideal above about 2-2.5GHz, and is not actually recommended at that frequency although it will work if thin enough. RT Duroid (PTFE substrate) is essential for anything much higher, but is a lot pricier. If you really want to go nuts, use ceramic (alumina) PCBs with gold traces!
For pretty much anything above a few MHz, a proper 4-layer board will improve almost everything except cost
It certainly makes the layout easier. More layers may become necessary if you go to particularly high packing densities, or use certain packages, such as BGA and uBGA.
The cost of PCB manufacturer has come down a hell of a lot over the last few years, to the point that it's almost not worth prototyping by any other method unless you really only want a one off, or are on a very very limited budget. There are companies that will do very low cost PCBs for small production runs or prototypes, such as
www.eurocircuits.be or
www.pcbpool.com . They have some limitations, but overall offer a very useful service.
As far as going surace mount, for all but fairly simple chippery you may have no choice. Most components that do something interesting are available in SMT packaging only, since they are all aimed at volume manufacturing where surface mount technology saves a lot of money. It makes playing with them at home a bit fiddly though. Also, bear in mind that a lot of chips listed on a manufacturers website may be available in theory but not practice, unless you want a couple of hundred thousand or so.
Don't bother designing anything other than an overview of a circuit on paper, since you won't be able to do much of anything useful with it if you want a PCB. Get a decent PCB CAD package and use that, it will give much more useful results and you will slowly build up a library of custom parts that will make subsequent projects easier. I would recommend Seetrax Ranger 2 for Windows (it was used to design the Empeg players), which you can get from
www.seetrax.com/r2win.htm . The demo version will give you an idea of what it does, while the full version is only 60 quid. I've been using various Ranger packages for 16 years, and on the whole they're pretty good. The other main low-cost PCB package is Ultiboard, which I haven't used, but friends of mine tell me it's quite good as well.
Hope this helps.
pca