I\'ve heard from several sources that Google App Engine Instances have a hard limit of 10 concurrent request. I was wondering if someone could clarify what exactly this mean
As of July 12, 2012, it's the latter. The 10 concurrent limit is enforced through a limit on concurrent threads on every runtime. Most of such cases, our scheduler will try to spin up a new instance.
Please also see the e-mail from jonmac on this thread: https://groups.google.com/d/msg/google-appengine/y-LnZ2WYJ5Q/j_w13F4oSSkJ