There are two different discussions here: One is how many people can connect to your server. This one has been answered adequately by others, so I won't go into that.
Other is how many ports yours server can listen on? I believe this is where the 64K number came from. Actually, TCP protocol uses a 16-bit identifier for a port, which translates to 65536 (a bit more than 64K). This means that you can have that many different "listeners" on the server per IP Address.