According to wikipedia SQLLite will fail a write if there are any concurrent accesses to the database. This alone makes me think it is not usable for 500 concurrent users.
Unless there are hardly any updates going on that is. I think 500 concurrent users is certainly enough to warrent a full blown DBMS.
Note, it looks like that wikipedia article is wrong (pretty common on wikipedia really). Anyways, if those 500 users are going to be updating a lot, I would still be weary of 500 concurrent users with 0 concurrent writes. While the numbers in the thread referenced by Nifle sound good, those are most likely from tests which are engineered to make sqllite look good. I doubt you will get the same milage with all queries, all table sizes, all cache states, etc.