Well, unfortunately that computer is not on the network right now, so I can't tell, but I did set a static IP to that IP address that I have in the traffic shaper and it followed the rules, so I'm hoping that when the computer comes back to the network it will do the same. I can see the traffic in the queue.
When I said encrypted traffic I meant mainly from bittorrent. Thats the main reason why I want to put a squeeze on this computer is because its consuming the whole network, bring it to a crawl. I set the upload to 256kbits/sec and 2500 kbits down, that seems fair, but won't destroy the network. We have a 16/2 business comcast setup. I setup a test computer on that IP and ran encrypted bittorrent of a linux ISO download and it followed the rules, so I hope it works now. I don't know why it wasn't working before. ??? I didn't change anything. :-\
Edit:
I think I figured it out why it wasn't working. I turned on the traffic shaper while the computer was downloading, expecting it to start slowing all of the active connections down, but the traffic shaper needs to be in place before the computer starts downloading things again. So, I will leave the traffic shaper enabled and when the computer comes back to the network I will see if it now follows the rules. :o ;D I figured this out by looking at the queues, some traffic was going through the shaper, and already open connections were going through the LAN/WAN queues. Thanks for pointing me in the right direction.
BTW, I think I was expecting it to act like it did in m0n0wall, where as soon as you enabled it, it would slow open connections, not just new ones starting.