what is sqlserver isolotion

Isolation requires that multiple transactions occurring at the same time not impact each other's execution. For example, if Joe issues a transaction against a database at the same time that Mary issues a different transaction, both transactions should operate on the database in an isolated manner. The database should either perform Joe's entire transaction before executing Mary's or vice-versa. This prevents Joe's transaction from reading intermediate data produced as a side effect of part of Mary's transaction that will not eventually be committed to the database. Note that the isolation property does not ensure which transaction will execute first, merely that they will not interfere with each other.

for further details:
http://www.developer.com/db/article.php/3706251

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