-pconnect or connect
pconnect, with several GB of memory for the server.
-max_connections ?
MySQL's top limit is 1024 concurrent connections. But in real life your server will die before you get to that number.
-seperated server db server ?
euh?
-kernel patches?
what OS are we talking about
If you really plan to do hundreds of banners per second, you should think about loadbalancing, where one MySQL database is the master and the rest are slaves. This gives you n times the capacity of one server.
Will you be doing a lot of inserts too?
And are you making money off this? if so, get yourself a proper database engine, like Oracle of even Informix. They can handle a lot more than MySQL.