I think Justin's absolutely right: don't use SQLite if you're doing the type of project where you need load balancing.
As for NFS, I haven't had major problems with it myself, but it's always called the Network Failure System by many people I trust. It can (will) also cause quite a bit of extra network traffic, especially since your database engine will reside on a different machine than the database file, likely causing reading of large quantities of data over the network that just get thrown out by sqlite engine.
I don't know about SQLite specifically, but I wanted to mention that using NFS w/ these database systems can lead to trouble. Notably, you *cannot* use NFS w/ BerkeleyDB databases on account account of physical drive requirements -- e.g. ability to map drive sectors into RAM, etc. I don't know if SQLite is similar to BerkeleyDB, but as they are both embedded db systems I wanted to point that out.
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