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The Data I am quarrying isn't large
The key is "isn't large". If the data set is small and the user base is small, it makes little difference. But you should look to the future no?
Even though I live and breathe xml these days, I currently don't store anything larger than properties files in flat files. I usually rely on oracle or mysql.
Take a look at this thread from the xml lists for some broad numbers [lists.xml.org...]
The thread is massive, and this reply seemed to have some good pointers.