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uTorrent slowing down a 6.5Mbps line while downloading even at 50kb/s


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I have a 6.5Mbps line here and im getting 770~810kb/s downloads from sites like rapidshare and microsoft, but when I have uTorrent running with limited upload at 40kb/s and download at 50kb/s ( 35 connections, 1 upload slot , 1 active torrent at a time ) it slows me entire internet connection down to a halt, pausing the torrent immediately resolves the problem.. Is there a permanent fix for this or is this my ISP limitation ??

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Ok ive browsed through the guide..

Things to note;

My indicator on uTorrent shows green.

I can download perfectly fine upto 800kb/s on private torrents, so I would presume there is nothing wrong with my firewall setup.

I dont have any 3rd party firewall applications, only using the one built into windows.

Fixed port on my uTorrent and i have that specific port open on my ISP provided DSL modem/router

My specs are

Q6600 @ 3.2Ghz

Abit IP35-E

6GB DDR2-800 (2x2GB + 2x1GB)

8800GT 1GB

ISP supplied 4 port DSL modem with minimal routing features

So i download from a private torrent that gives me 770kb/s on avg, i limit the download to 50kb/s and upload to 40kb/s and my entire net speed is limited to about 40kb/s or less, pausing the all the torrents give me a little more speed but closing uTorrent allows me to go full blast, Im guessing this is an ISP limitation on the number of possible active connections?

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