It sounds like you need to check your upload bandwidth within LW. I also use 256/64 kbps service but have my setting as Modem, not as cable/dsl (Tools>Options>Downloads.) [
You might also want to limit your dwnld speed to say 90-5% or something.] I limit uplds so I can still browse the net. I found that on my modest 64 upld bandwidth that I couldn't limit the speed enough if set to cable/dsl. Also see Tools>Options>Speed & Uploads>Basic within LW.
As far as LW giving side-fx to your connection, well somethings not right there. That should not be happening. Go to Tools>Options>Advanced>System Startup & make sure the option box is not ticked. Also go to Tools>Options>Shutdown & tick Shutdown immediately.
Here's some hints on optimising LW:
A well set-up LW can start to automatically continue its dwnlding after it's settled down perhaps 2 out of 3 times you open LW. Optimising LW & Maximising Uplds & Dwnlds A (1st post only) & also Part B which is even better & last & least are search & dwnld hints.