uTorrent kills my connection.

[legomaster04]

Hi. Since two days my uTorrent is behaving in a strange manner. I have a 1.5M connection, so I put a limit to 1M so I can properly surf the web, however, since two days, when I open uTorrent, it does download for say, one minute, between 200k and 900k, then gradually drop to zero and for at least two minutes I cannot use any other internet services on my computer. Afterward, the speed goes around 0K-20K. Usually when something like this happens I simply reboot my router & modem, then everything works fine. As for now it seems like there is nothing to do.

This happens whenever I use my VPN or not. My router is a Linksys WRT54G. I use uTorrent (1.8.4) for OSX 10.8.2 .

Thank you.

EDIT - Same problem with Vuze after two days, should I invest in a new router?