> Are all transactions database locks (not table locks)?

Yes.

> If I prepare a select statement and start stepping on Table A on process one
> and pause before finializing and do an update on Table B with process two or
> even the same process I will get a database is locked error?

Yes.

> Does everyone make databases with one table each ... ?

No. Fetch your data, finalize the select, then do your
update(s). If it's important that the database not be
changed by another process between the select and the
update, wrap the whole sequence in a transaction (begin
immediate).

 <http://www.sqlite.org/lang_transaction.html>

Regards

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