Yeah I realize your suggestion didn't address the speed question (I probably shouldn't have lumped both problems in the same post) and no I'm afraid the tips with deleting that folder didn't work.

1. XP Service Pack 2, Home Edition
2. Router FW
3. 512 RAM, Pentium III, 863 MHz
4. 10 GB
5. Cable
6. Surfboard SB 4100/Linksys WRT54G (not using it for wireless)
7. Home
8. LW 4.10.9 Pro/Jave 1.5.0_06
9. Comcast
10. Sharing connection with one other machine and no other P2P client
11. New user and new problem
12. The test worked

Sorry I should have provided all that to begin with.