Thanks guys.
Josh (other) and Zackary. Yes it will count hits even if they come from people that sit all day long and refresh the page.
I was thinking of incorporating some sort of a cookie to the user's machine which will tell the script that this user has visited the site and no longer do we need to keep these statistics. But how can you justify what is a valid time to live for a browsing? To me if a user hits refresh on a page just to increase the counter is not a valid hit, but the person who is there and reads some posts, does something else later and then refreshes the page again is a valid hit.
We can definitely enhance the script to become a proper pal box and to have it integrated with IIP providing information like the hits per day/month/year, referrer checks etc.
Once again this is not meant to replace retro stats or any other statistics package (especially your raw webserver files). And make sure that if you run this script on your site to monitor the MySQL performance over the period that you run the script. From personal experience, if you have a small site like mine circa 150 hits a day on average then you are fine. For more hits a day, please run your own metrics and let us all know about it.