I'm currently running a very small PunBB forum (less than 10 users) on SQLite, and it seems to be working very well. I was running it on MySQL before, but switched it over because my host charges for MySQL usage - only $0.02 a day, but that adds up over time. Converting from MySQL to SQLite was pretty tricky, especially since there was something screwy with the database schema that the setup process installed, but after that everything went smoothly.
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