One Database vs. Multiple Databases

I need to design a system which represents multiple "projects" in SQL
Server. Each project has the same data model, but is independent of all
others. My inclination is to use one database to store all projects.
Looking at the numbers involved, however, I wonder if I would get
better performance by storing each project in its own database.

Suppose I have 50 projects, each with two users and 10,000 rows; it
seems to me I'd rather have 50 x 2 users working in a table with 10,000
rows than 1 x 100 users working in a table with 500,000 rows.

On the other hand, the single database approach seems more elegant from
a design perspective. I wouldn't be creating multiple copies of an
identical data model, and I wouldn't be creating new databases as a
business procedure, every time a new project is required.

Here are my questions:
1. For the scenario described above, am I correct to assume I will get
better performance by using multiple databases, or does SQL Server have
some clever way of achieving the same performance in a single database?
2. Is the multiple database approach common? If anyone has tried it,
please tell me about how it works in practice.


-TC

.

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