I assume you're referring to this FAQ item:
http://www.linode.com/products/faq.cfm?id=19
One file descriptor is any file handle that is open by a process at any time. Meaning, a limit of 1024 file descriptors means that you can't have more than 1024 open files (including sockets to servers/ports) at any given time. If we also assume that a page served takes less than 1 second to process by PHP (and since PHP closes all open file handles at the end of script execution), and subtract the number of processes running, you can have a maximum of roughly 500 visitors at any given
second (leaving room for several client processes of both Apache and MySQL).
Basically, if you need more than that to begin with, you really need a fully-dedicated server (considering that Wikipedia has statistically a little less than 10 requests at any given second).
As the FAQ answer says, with the number of file descriptors set to a maximum of 1024, it's set
very high.
I hope this was slightly more descriptive.