Question - is this case proven to be the result of lock escalation (i.e. if you trace with profiler for lock escalation events, is that definitely what is happening to cause the blocking)? If so, there is a full explanation and a (rather extreme) workaround by enabling a trace flag at the instance level to prevent lock escalation. See http://support.microsoft.com/kb/323630 trace flag 1211
But, that will likely have unintended side effects.
If you are deliberately locking a row and keeping it locked for an extended period, then using the internal locking mechanism for transactions isn't the best method (in SQL Server at least). All the optimization in SQL Server is geared toward short transactions - get in, make an update, get out. That's the reason for lock escalation in the first place.
So if the intent is to "check out" a row for a prolonged period, instead of transactional locking it's best to use a column with values and a plain ol' update statement to flag the rows as locked or not.