I’m looking to see if its possible to have a site where I will have 8 people playing a game and each of them will be able to see each other on screen?
Yes. But the bandwidth required would be a lot - you’d likely use over 2mbit/s to receive the streams, which would preclude some users without a sufficiently fast connection, and would possibly cause lag for the game response. You might want to take a look at flash p2p streaming to reduce your server bandwidth.