table type and server load

I'm currently working on an application that looks like it's going to 
have (we're still finalizing the database design) 12 lookup tables 
(tables of mostly static data) and 7 high entry data tables (very 
denormalized). However, relative to other applications, the whole thing 
is pretty static. It's a reporting application and reporting happens no 
more than once a year (maybe once every 2 years).

Over the next 5 years we intend to add on to this application 3 other 
reporting groups that will (for arguments sake) add 5 lookup tables and 
7 data tables each. (I really don't know I'm just kind of guessing 
here). Many of the original 12 lookup tables will be reused in the other 
reports.

To some extent the reports would be accessed separately, but eventually 
they want to be able to see the data from the different reports combined.

So I have a few questions.
1) The data is very relationtional, but would you use MyISAM anyway 
because it's such a read heavy application?

2) How does the use of federated tables affect table access efficiency? 
i.e. If I put the "data entry" tables each in their own schemas and the 
lookup tables in another and used federated tables to connect them does 
that improve the lookup speed? Or does it really not matter since it's 
mostly lookup anyway?

3) Are there other ways to make this more efficient?

Thanks
Joelle

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