sql - Isolation level strategy for asp.net and sql server 2008

Question

What should be ideal Isolation level strategy for asp.net and sql server 2008. We use read-commited but it still hangs see ex below.

• Table name - Customers
• Isolation level - Read Committed

Transaction 1:

set transaction isolation level read committed
Begin Tran

UPDATE Customers
SET ordercount = 50 
WHERE id = 2

WAITFOR DELAY '000:00:20'
rollback tran

Transaction 2:

set transaction isolation level read committed
Begin Tran

Select * From Customers 

Trans commited

Transaction 2 hangs for 20 second!! How to handle this scenario?

Regards,

Chandan