SqlException: Deadlock

Not that this is going to help the deadlock issue, but you should be disposing your other IDisposable objects much like you're disposing your SqlConnection as such:

    using (SqlConnection con = new SqlConnection(datasource))
    using (SqlCommand cmd = new SqlCommand("Select * from MyTable Where ID='1' ", con))
    {
        cmd.CommandTimeout = 300;
        con.Open();
        using (SqlDataAdapter adapter = new SqlDataAdapter(cmd))
        using (DataSet ds = new DataSet())
        {
            adapter.Fill(ds);
            return ds.Tables[0];
        }
    }

You might be able to avoid the lock with a locking hint in your query thusly:

Select * from MyTable with (nolock) Where ID='1'

I want to be clear though, you're allowing for reads of uncommitted data with this solution. It's a risk in a transactional system. Read this answer. Hope this helps.

Basically, the SQL server concurrency model makes it so you can never avoid this exception (eg. completely unrelated transaction might block eachother if they happen to lock the same index page or something). The best you can do is keep your transactions short to reduce the likelyhood, and if you get the exception, do what it says and retry the transaction.

There are a couple of things you can do to lessen the number of deadlocks you receive, and some things you can do to completely eliminate them.

First off, launch SQL Server Profiler and tell it to give you a deadlock graph. Running this trace will tell you the other query which is conflicting with yours. Your query is quite simple, though I seriously doubt you have a SELECT * query off a table called MyTable in your system...

Anyway, armed with the deadlock graph and the other query, you should be able to tell what resources are deadlocking. The classic solution is to change the order of both queries such that the resources are accessed in the same order -- this avoids cycles.

Other things you can do:

• Speed up your queries by, among other things, applying the correct indexes to them.
• Enable snapshot isolation on the database and use SET TRANSACTION ISOLATION LEVEL SNAPSHOT in your transactions where appropriate. Also enable read committed with row-versioning. In many cases, this is enough to eliminate most deadlocks completely. Read about transaction isolation levels. Understand what you're doing.