The 1M/256k describes your upload/download speeds.
I.e. you can download from the internet at a max 1Mbit/Sec, but you can only upload at 256Kbit/Sec. ( Common amongst ADSL )
With most ADSL modems, if one of the directions is maxed out ( i.e. you are uploading at the full 256Kbit/Sec, the other direction will 'grind to a halt'. )
- Don't know the technical reason why, something to do with the way they are capped I think.
I guess, what you are trying to do, is limit the amount of bandwidth that is used by your local network, to the internet. So, just in case someone tries to reach your SME server from the internet there is still bandwidth available.
( There is a topic about this somewhere, try searching for Quality of Service, or Throttle Bandwidth )
Hope it sheds some light.