I know that is a typo and you have more than 1 MB of RAM, still, from running a program called MenuMeters, I have learned that 10.2.6 has a memory leak, so I hope you have a lot of
RAM.
My 10.2.6 has 1 gig of RAM, and I have a cable connection. My system NEVER sleeps, HD NEVER spins down, only monitor sleeps. With UltraPeer OFF and bandwidth set to 50%, I can run version 3.02 for days on end.

UltraPeer on, bad things start happening. For me, at least.
There are a couple of things for you to compare with your setup. Maybe you'll come up with a configuration that works.