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The default asp.net membership provider uses a .mdf sql server database file in the app_code database.
How scalable is this in terms of calling a flat file database instead of running it in a standard sql environment?
Is this recommended only for small/medium traffic sites?
It’s a reasonable trade off for any site that can run on one server. It’s fairly reasonable for small to medium traffic sites.
When you grow to a point of a web farm, then you’ll be better off with a separate server. Also, depending on how database dependent your application is, you may find better performance handing off SQL queries to a totally different server/processor to handle the database side.