@charles, try this:

- open Transmission and set the max download and upload speeds to half your 
network capabilities;
- then add some torrents (e.g. ubuntu-9.10 i386, amd64 and remix releases);
-  watch the network usage with the "System Monitor" and the alleged speed at 
Transmission status bar

You will notice that the consumption will far exceed the limits you
configured, specially for the upload.

-- 
Transmission bit-torrent doesn't honor speed limitation preferences
https://bugs.launchpad.net/bugs/460733
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