How far can one take the sqlite database from a single-user , embedded , prototype oriented db engine ?
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Check out http://stackoverflow.com/q/784173/27310 to get an idea of how big SQLite databases can get in theory without performance problems. However, I'd suggest that you use a good database abstraction layer so you don't have to worry about the underlying database at all. That way, once you hit SQLite's working limits, you can switch over to a non-embedded RDBMS without much work.