Thanks to those that have helped thus far.
To clarify what we need:

Our CRM system (really a prospect gathering system) needs to internally
hosted, be realtime and needs to be updated automatically. Our website
(hosted externally) is *one of many* tools which we are going to use to
gather information from prospects via subscription forms and our
shopping cart. Our internal system will hold much more detailed
information about our prospects and will be updated every time we deal
with the prospect whether that be by phone, mail, email etc. From the
web we will simply get information such as email address, name, company
name, telephone and country via a form.

The idea is that if someone wants to subscribe via the web they are in
effect a prospect for our company because they are interested in our
products. 

So our internal DB will have lots of information about each prospect and
be updated frequently whereas the web form is a small information
gathering tool. Basically what I'll need to set-up is some sort of
system which:
1) Validates user input from the web (php)
2) Sends the information to the external website DB for future customer
login authentication (php> mysql>update/insert)
3) Sends the information to our internal website DB (Intranet server)
(email or replication?) 
4) Flags our people here when a new prospect arrives (php>email)
5) Full front end system for the prospect details etc (Intranet server).
(php/mysql)

The MySQL replication documentation is for someone experienced with
MySQL and understands the replication concept fully. This is the first
time I have even looked at it and I'm a bit unclear. For instance I
would assume that my Master DB would be my Internal server but it's just
that, an assumption. Also how would I go about configuring an externally
hosted web db to be it's slave? Would I need the sysadmin of our web
host company to do it? Looking at the documentation it appears that the
two databases need to have exactly the same data structure (I think) if
they are to be reproduced so if I have 30 fields on my intranet DB for
prospects and only five on my externally hosted web DB would replication
even be an option? Or is it simply the individual fields which need to
be the same?

The only part I have a problem with is number 3. Jason Wong has
suggested one solution which I can probably get working in a few days
when I get more information on how STDIN works but suggestions have been
that I should look at replication as more robust and efficient. What
(based on what I have told you) would you do?

Any help much appreciated.

> 
> RTFM: 
> http://www.mysql.com/documentation/mysql/bychapter/manual_MySQ
> L_Database_Administration.html#Replication
> 
> This really seems to be what you need. Any php-level solution 
> is going to be kludgy and slow by comparison and prone to 
> problems. Go with the tested, production code. It sounds like 
> you may also have a gray area in your requirements that you 
> should clarify. How current does the internal db need to be? 
> Is a once-a-day replication ok for crm applications or does 
> it need to be in "real-time"? Clarifying this point can 
> really help you out in terms of what your solution needs to be.


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