Large torrents usually have a chunk size of 4 MB. Thus you will fill up 1 GB with 250 peers (up+down total), if I understand this correct. Also, I suspect (although I'm not sure) that if rtorrent is using large amounts of swap space, it _may_ cripple your NSLU2 (remember that it's only a 266 MHz processor). Finally, if rtorrent uses all your bandwidth, the NSLU2 may become unresponsive, simply because the ssh connection "drowns in" (times out because of) the large traffic load.
I've settled for settings with up/down rates 20% below the maximum (about 1 MB/s down in my case), and limited the number of peers:
max_uploads_global=20
max_downloads_global=1
My settings work reasonably well, although I have been able to crash rtorrent when downloading many large torrents at once. As long as I stick to a few torrents at a time, I have no problems.
Examining my memory usage, I get this from top:
Mem: 29988k total, 28836k used, 1152k free, 1400k buffers
Swap: 96348k total, 32472k used, 63876k free, 11112k cached
PID USER PR NI VIRT RES SHR S %CPU %MEM TIME+ COMMAND
18435 manscher 15 0 29316 6752 2340 R 17.1 22.5 2016:40 rtorrent
Hope this helps.
Martin
-- "I reject your reality and substitute my own" - Adam Savage