Does this case call for InnoDB or MyISAM?

The difference between row-level and table-level locking is only important for insert and update queries. If you're mostly do selects (so the inserts/updates do not happen too often to lock the table) the difference will not be all that much (even though in recent benchmarks InnoDB seems to be outperforming MyISAM).

InnoDB supports row-level locking instead of table-level locking... so that should alleviate your problem (although I'm not sure it will remove it entirely).

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