Hello trying to find a good setting for the number of sql connectiosn to allow

Server will be

Dual PIII 1.2 ghz
1 gig ram
redhat 7.2

Dont plan on putting anymore than 300 customers per box
however multiple databases are allowed

also wondering if after growth having one server just for mysql and having remote access to it via all servers.

just looking for some feedback from hosts who have been up a while and can give me a good number to use

or if i should jsut set it low and adjust as needed.

Thanks