Debian sarge Mysql 4.1 (Too many connections)

[Simon <greminn@gmail.com>]

Hi There,

We are running MySQL in a shared hosting evnironment with around 200
PHP/MySQL websites and getting this error:

Warning: mysql_connect(): Too many connections in "/path/to/file.php" on line 9
Cannot connect to the server at this time.

at some stages during the day.

Would someone be able to take a look at our my.cnf and see if we have
anything incorrect that would lead to this issue?

Thanks!, Simon

my.cnf below:

[client]
port            = 3306
socket          = /var/run/mysqld/mysqld.sock

[mysqld_safe]
socket          = /var/run/mysqld/mysqld.sock
nice            = 0

[mysqld]
set-variable=max_connections=500
set-variable=wait_timeout=300
user            = mysql
pid-file        = /var/run/mysqld/mysqld.pid
socket          = /var/run/mysqld/mysqld.sock
port            = 3306
basedir         = /usr
datadir         = /var/lib/mysql
tmpdir          = /tmp
language        = /usr/share/mysql/english
skip-external-locking
old_passwords   = 1
#bind-address           = 127.0.0.1
key_buffer              = 16M
max_allowed_packet      = 16M
thread_stack            = 128K
query_cache_limit       = 1048576
query_cache_size        = 16777216
query_cache_type        = 1
#log            = /var/log/mysql.log
#log            = /var/log/mysql/mysql.log
#log-slow-queries       = /var/log/mysql/mysql-slow.log
server-id               = 1
log-bin                 = /var/log/mysql/mysql-bin.log
max_binlog_size         = 104857600
#binlog-do-db           = include_database_name
binlog-ignore-db        = mysql
skip-bdb

[mysqldump]
quick
quote-names
max_allowed_packet      = 16M

[mysql]
#no-auto-rehash

[isamchk]
key_buffer              = 16M