A lot about this, obviously, depends on your game. Could it work for 1,000 users? On one box? Probably not. On a small cluster? Maybe, if you keep it simple. Once it gets popular, however, you've made an investment in a very difficult platform to manage. You will have scale nightmares not unlike those that plague large websites, but more difficult because of the interactivity between users.
Even simple turn-based games (think Facebook & Myspace apps) have massive scale problems using LAMP back-ends... and they are nowhere near real-time.
MySQL simply isn't fast enough to handle the transaction load (for writes & replication). Hardly any database is. You'll need to keep your state in RAM, then batch your writes on schedule. This technique eventually hits a wall and then you will need to split your databases into completely isolated clusters.
Getting people to play against each other on isolated data islands gets difficult, unless you get VERY creative. This is a problem that memcached can't solve. You'll probably need to shard those as well.
Popular online games use custom streaming protocols on their back-ends. World of Warcraft simply couldn't exist if it were powered by PHP. You can't get two players to battle each other, if both players need to hit your website every second to retrieve updates. The lag, if movements are animated, would be jerky (at best). You need a two-way communication protocol.
I'd highly suggest looking into a distributed messaging platform. Perhaps even a language that's built for parallelization & clustering, like Erlang.