Chris,
I think you're setup is ok but that you're experiencing some of the early bugs in the new Ultrapeer system.

Questions:
1. Which version of Limewire are you running? The latest version is 2.02 (i.e., no longer a beta version!).
2. Can you see your Connections screen? If not, click on the View pull-down menu and enable it.
3. In the Connections screen, what number is plugged-in to "Keep approx. __ connections up"?
4. In the Connections screen, along the bottom and to the left of the text "Keep approximately...", what mode does it say you're in, e.g. [Client], [Leaf], or [Ultrapeer]?
5. In the Tools / Options / Speed settings, is the checkbox unchecked for "Disable Ultrapeer"?

Now let me repeat back what I am understanding from you (from your post):
- in the Connections screen, you see only one connection and it is labeled "Ultrapeer"
- you're getting fewer search results and upload requests than you're accustomed to

So, I think what's happening is that you're in Leaf mode (meaning you're "slaved" to another machine running in Ultrapeer mode) and that the Ultrapeer isn't doing a good job. This has been my impression of Ultrapeer so far. The only 'solution' is to avoid Leaf mode or to become an Ultrapeer yourself.

Solution:
- in Tools / Options / Speed, try clicking on the checkbox for "Disable Ultrapeer"
- shutdown Limewire and restart
- you should reconnect to the network and get as many connections as you've requested, eg. 4 Hosts (though I think this might be another bug; it may still act like you're a Leaf and limit you to one host)

Long-term, ie. once Ultrapeer is fixed, it's sort of a toss-up whether or not you want to operate in traditional servent-mode, in Leaf-mode, or in Ultrapeer-mode. Since you're on an ADSL line, you probably want Leaf mode though you could also do traditional mode; Ultrapeer requires more upstream bandwidth than your ADSL provides.