Yes you can have more than one database, this type of set-up is for large traffic heavy sites and you would want to use something like http://wordpress.org/plugins/hyperdb/ . This is outside the scope of the vast majority of WordPress sites.
You can manage a multitude of blogs from 1 db if you want using http://codex.wordpress.org/Create_A_Network. The option is up to you, the bare minimum is 1 db per install.
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