Each SSE connection will use a dedicated PHP process, so counts as one of the Apache processes. (Each will also be using a socket and a local port.)
500 simultaneous clients is a lot, even more so if they all use PHP, and you are going to need a lot of memory on your server. But, if you have enough memory, set both MaxClients
and ServerLimit
to 500. (I'd suggest starting with 50 or 100, run some stress tests, and keep increasing those limits and repeating until you see your server starting to swap.)
For stress-testing SSE, I've found SlimerJS to be the best choice. (The WebKit in PhantomJS (as of 1.9.x) is too old to support SSE.) Selenium would do the job too. Make sure to keep clients and server on different machines, as 100+ clients will also use a lot of memory and load.