Ryan Boren wrote about using memcached with WordPress almost a year ago:
Memcached is a distributed memory object caching system. WordPress 2.0 can make use of memcached by dropping in a special backend for the WP object cache. The memcached backend replaces the default backend and directs all cache requests to one or more memcached daemons. You must have a memcached daemon running somewhere for this to work. Unless you’re managing the server on which your blog is running, you probably can’t run a memcached daemon, making this backend useless to you. The memcached backend is targeted at ISPs and those running WPMU. If you are using WPMU and distributing DB requests across multiple servers, memcached will come in very handy. Using memcached for a single blog isn’t really worth it. In my tests, it was sometimes slower than using the default object cache backend.
The plugin is here, a bug-fix note is here.