> [Mon Jul 20 11:04:46 2009] [error] server reached MaxClients setting, consider raising the MaxClients setting
That's an Apache configuration issue, not Moodle. Go into your Apache config in /etc/apache2/ and take a look at the MaxClients setting. It's likely too low. Here's a good article on how to calculate what the proper MaxClients setting should be:
As for the database errors, take a look at your MySQL configs - especially the max_connections variable.
Are you using a PHP opcode cache like eAccelerator or APC? If not, get one installed. That will greatly reduce the amount of time Apache spends processing each request, therefore freeing it up to serve other users.
Hardware and performance
RAM and RAID and concurrent users
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