Try the tips here & see if it makes any difference (you could even reinstall Java 6).
Reduce the drag caused by LW
I can't find anything to suggest that KOS are traffic shaping, but I guess it's possible. Their AUP vaguely mentions bandwidth management but you've used them with no probs before
Unless you changed your internet plan recently?
http://www.kos.net/about/aup.kos