I always use READ UNCOMMITTED now. It's fast with the least issues. When using other isolations you will almost always come across some Blocking issues.
As long as you use Auto Increment fields and pay a little more attention to inserts then your fine, and you can say goodbye to blocking issues.
You can make errors with READ UNCOMMITED but to be honest, it is very easy make sure your inserts are full proof. Inserts/Updates which use the results from a select are only thing you need to watch out for. (Use READ COMMITTED here, or ensure that dirty reads aren't going to cause a problem)
So go the Dirty Reads (Specially for big reports), your software will run smoother...