That should help a lot, it's better than a normal file open over a network connection. Though you might still find issues with file locking:
http://www.sqlite.org/lockingv3.htmlE.g. any process requires an "Exclusive" lock on the entire database (i.e. file) before it can write to it. Such lock requests are either set to "Pending" (i.e. wait until available) or rejected if there are any other locks already on the DB (e.g. "Shared" if one or more are reading from the DB).
IMO, the SQLite DB is very nice for client-only DB's. It "can" handle multiple users, but only in the same way as using an Access MDB / Paradox DB file can ... i.e. not very well at all. It relies heavily on the OS's own file locking to avoid contention and corruption. With the client-server databases I've noted, more than one client can actually write to the DB at the same time. E.g. the FireBird DB allows a record-level lock (i.e. one entry inside any one single table), not to mention it caches writes outside the OS and does not disallow writes if there's already a lock.
E.g. say user 1 saves a setting. But user 2 causes the exact same setting to be saved within a 1000'th of a sec. Then using SQLite / MDB / DB would either cause a fail for user 2, or keep him waiting until user 1's write is complete (which could be forever if anything goes wrong with user 1's PC/Software/Connection). With FB/PG/MySQL/MS-SQL both writes would complete from both users' view point, the server would cache (remember) user 2's write transaction and complete the write once it's completed user 1's write.
For the OP's scenario (i.e. 11 concurrent users) I'd say he's on the border-line between using a file-based DB (like SQLite/MDB/DB) and going for a full fledged client-server DBMS. Usually you'd be recommended to go with a C/S db for anything above 5 users (especially if you wanted to use a MDB - those get corrupted easily). SQLite is a bit better than Access in this regard, so I'd be willing to say 10 users max (though that depends on the size of the data to be read/written), but I'd start feeling itchy about 11. I'd actually say Paradox DB's might be better since they are able to lock only portions of each DB file - and each DB file is only one table. With the C/S stuff you can easily have 100's of concurrent users, e.g. most websites use MySQL and some (like Google / FaceBook / Amazon) number their concurrent writes in the 1000's per second (never mind just so many users).
The nice thing about SQLite is you don't need to install anything on the server or anything extra onto the client's PCs (except for those ARX's for each version of ACad/BricsCAD). With the C/S you'd need at least a server install (if the server doesn't already have one) as well as possibly an ODBC driver on each PC. BTW, FireBird also has an embeddable library:
http://en.wikipedia.org/wiki/Embedded_database#Firebird_Embedded (which means it can be made similar to Daniel's ARX's).