Some of MySQL's engine modes support transaction processing and some do not.
The current production engines in MySQL 5.0 that support transaction management are NDB/Cluster,
InnoDB (supplied by Oracle), and the
solidDB engine (supplied by Solid Information Technology).
A non-transaction engine can only fetch data from a database and display it, like a list of CD's or books in a library.
An engine that supports transaction processing can execute a task using server side functions.
Banking online is an example of a transaction processing engine. You access your account from the non-transacting script, the simple database. Once done the transaction engine takes over and manages your money as you choose.
MySQL has also introduced (3 years ago) a new transactional storage engine - code named Falcon.
Falcon is a next-generation transactional management engine designed to run on all popular hardware/architecture platforms.
See for more info:
mysqlperformanceblog.com/2007/01/12/falcon-storage-engine-design-review/
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