I'm always running tests against an in-memory DB (HSQLDB or Derby) for these reasons:
The in-memory DB is loaded with fresh data once the tests start and after most tests, I invoke ROLLBACK to keep it stable. ALWAYS keep the data in the test DB stable! If the data changes all the time, you can't test.
The data is loaded from SQL, a template DB or a dump/backup. I prefer dumps if they are in a readable format because I can put them in VCS. If that doesn't work, I use a CSV file or XML. If I have to load enormous amounts of data ... I don't. You never have to load enormous amounts of data :) Not for unit tests. Performance tests are another issue and different rules apply.