[snip]
I am writing an attendance system in php/mysql for my school. We have a 
little less then 1000 students. For every day of the school year one 
record will be entered into a table for each student representing their 
attendance status (present, absent, late, etc...). I also have several 
other supporting tables for relationships. When it comes to reporting 
and querying this DB I am worried that it will very quickly become very 
large and slow. Can mysql handle this? Are there any techniques to 
speed it up? I will trying indexing major columns.

I have also considered keeping all previous days attendance in a 
separate table from the current days attendance and moving things over 
in the middle of the night. This way any operations on the current days 
data will go quickly, but reports on long term things will still be 
slow. Good idea?
[/snip]

The short answer is that 10000s of records is no problem dependent upon
the server, good coding, and good database optimization. We process
millions of records each day with PHP and MySQL (today there are 58M
records to be processed). Over time we have found bottlenecks and
cleared them up. This is being done on a sub-1Ghz server (but I am
looking forward to an updrade!).

HTH!

Jay

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