I am thinking of using SQLite as an in memory stub for my Oracle database. I can easily direct all my DAL commands to the SQLite, but I am now wondering how I should easily
How about just backing up the SQLite-Db-File?
The good thing about SQLite is, that you just can copy the whole db-file as often as you want. You can also have SQL-files to populate some db file with data. I don't understand your problem totally, but with a mixture of db files (as templates) and (optionaly) some SQL-Files to fill tables as needed should suffice for also very difficult testing issues.
The SQL-Files can also easily created by dumping simple files and (optionaly) deleting unwanted entries or adding additional ones.