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So I might be a bit odd but for the rails site which I did run for awhile the db layer was sqlite replicated on each machine. Since it only did reads this turned out to work better than MySQL. Everything was on EC2 instances (except for the dev instance on my laptop). The correct combination of technologies depend largely on your application, what are you building?

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Thats a good question. Its an online service/applicaiton that will stream DJ sets (1-2hours longs) in an interactive way. There are going to be hundreds of sets. Just image the usability like youtube, where each set is presented like a youtube video and is going to have a track-list and discussion. The streaming is going to be done using lighttpd Mod_streaming (pseudo http streaming) played via a flash player. Thats the gist of it.

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