Why UPDATE blocks SELECT on unrelated rows?

Question

Having the table, defined by script [1], I execute scripts in 2 windows of SSMS

--1) first in first SSMS window
set transaction isolation level READ UNCOMMITTED;
begin transaction;
update aaa set Name ='bbb' 
    where id=1;
-- results in "(1 row(s) affected)"
--rollback

and after 1)

--2)after launching 1)
select * from aaa --deleted comments
where id<>1
--is blocked

Independently on transaction isolation level in 1) window, the SELECT in 2) is blocked.
Why?

Does isolation level for UPDATE have any influence on statements on other transactions?

The highest isolation level is default READ COMMITTED in 2).
No range locks are attributed, SELECT should have suffered from COMMITTED READS (NONREPEATABLE READs) and PHANTOM READS (Repeatable Reads) problems [2]
How to make it suffer?

How can UPDATE be made without blocking SELECT?

[1]

CREATE TABLE aaa
(
    Id int IDENTITY(1,1) NOT NULL,
    Name  varchar(13) NOT NULL
)


insert into  aaa(Name) 
   select '111' union all 
   select '222' union all 
   select '333' union all 
   select '444' union all 
   select '555' union all 
   select '666' union all 
   select '777' union all 
   select '888'  

[2]
Copy&paste or add trailing ) upon clicking
http://en.wikipedia.org/wiki/Isolation_(database_systems)

Update:
SELECT WITH(NOLOCK) is not blocked...

Update2:
or with, what is the same, READ UNCOMMITTED

Note that UPDATE is on different from SELECT row.
Even, if on the same, this behavior contradicts to description of isolation levels [2]

The points are that:

• suppose I cannot know who else is going to SELECT from the same (UPDATE-d) table but on unrelated to update rows
• to understand isolation levels [2]

SQL Server 2008 R2 Dev

Answer 1

I believe it's because you don't have a primary key, which I think is resulting in the locks being escalated, hence blocking out the SELECT. If you add a PRIMARY KEY onto the ID column, you will notice that if you try again, the SELECT will return the other 3 rows now - no WITH (NOLOCK) hint needed.