I have a slowish dsl connection. I usually set my slots to 5 and my slots per person to 1 so if a host has an upload running and tries to make a second one, it will say Upload limit reached, (as wil susequent attempts with other files). This will start a minute or so after the first upload has finished. If I have 5 different uploads running and a 6th host tries to upload he will be "queued at 1" (I'm not sure how many can queue)
So ... the Upload limit reached is trigerred by the uploads per person setting, but is not permanent. The file will upload in due course.
To set your uploads per person higher than your max upload slots would be meaningless.
I hope I've managed to make it clear
