Bitbucket,

I understand your explation and I read the same information from BOL, etc. That doesn't change the fact that the way you framed the scenario, it makes no difference whether snapshot isolation is on or not, you should get the same result. You specifically state that Transaction 1 makes its second query before Transaction 2 commits, hence it does not see the change Transaction 2 made. Transaction 2, however, will see the change made with itself when it queries the second time, even though it hasn't committed, because it hasn't ended yet.

This is why a simple answer of READ COMMITTED should be valid.