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We scale Streamfile.com with Erlang. Both front & back-end.

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Adding lots of application servers isn't the hard part, generally (from what I've read... I have to admit I've never had to do more than the 'easy stuff'). The database is. How's Mnesia scale up? Where does it work well, and where does it not work so well?

If you find it difficult to scale up databases, try looking at CouchDB instead http://couchdb.apache.org/index.html

And how will CouchDB solve your scalability problems? I am really asking, because there website contains nothing exact about scalability problems.

I also tried to read about in the first chapter of the upcoming CouchDB book, but it only contains vague generalizations like "Erlang makes you scalable automatically" or "it is built on the same technology (HTTP) as the web which is proved to be scalable".

I am still not convinced.

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