How To Improve This Transaction

Hello,
 
 
I have four different transactions such as below and I do one insert and one update in each transaction and it seem it is slow and creates deadlock with the user interface.
 
These transactions are performed against the tables that users are accessing with another user interface. I have following two questions:
 
1. T2.TextField1 and TextField2 = @TextField2 are Ok, Nok fields so I did not put index since only two distinct values. Should I put indexes on these fields?
 
2. Can I make this transaction let user interface do its task in case accessing the same rows, I can start transaction again but I do not want users get disturbed?
.
 
BEGIN TRANSACTION pTrans
BEGIN

   INSERT INTO T1

                      (fields)

   SELECT
     (fields)

   FROM
         T2 INNER JOIN View1 ON T2.TrID = View1.MyTableID

   WHERE (T2.TextField1 = @TrType AND T2.TextField2 = @TextField2)
 

   UPDATE
    T2

   SET
              TextField2 = 'Ok',
  TextField2Date=@MyRunDateTime

   FROM
         T2

   WHERE (TextField1 = @TrType AND TextField2 = @TextField2)
 

  IF @@ERROR <> 0

  BEGIN

     rollback transaction pTrans

     return(-1)

  END

  ELSE

  BEGIN

     commit transaction pTrans

  END
END