actualy, the problem is not in how many connections mysql allowed, but how much is the timeout for idlle connections...I'm still not sure how PHP communicates with mysql and why it leaves idlle processes after each connection, perhaps its mysql fault, I dont know, but in my case, I've solved this problem by changing wait_timeout setting in my.cnf
although, I just double checked mysql manual and it says that setting only affects TCP/IP connections and not socket-type connections...yet, I'm using socket type, so I dont know...
anyways, try it yourself and see if it helps, also, you might want to check this page:
http://dev.mysql.com/doc/refman/5.0/en/server-system-variables.htmlP.S.
you can compare how many idlle connections and how long they where idlle from phpmyadmin before and after this change