I have a linksys router hooked up to my modem and three devices hooked up to my router(PC1 PC2 xbox). I was wondering if I can somehow control the download speeds of each device. Is there someway I can set a speed limit for each device?

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Not many routers do this but alternative firmware may well be able to. Why do you want to set limits anyway?

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well I really hate it when im gaming and i get this really bad lag because other people are in the other computer in myspace or such and they take all the connection.

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What model number is your Linksys?
If it's one of the Linux-running models, consider installing DD-WRT:
http://www.dd-wrt.com/

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Well, I don't know of a common hardware-based solution for this. But there is a piece of software that will limit bandwidth for specific programs--however, this probably isn't a good solution since (I'm assuming) the computers are probably not yours, and you don't have control over them. You could pull some sneak--buy an ethernet hub, connect it to the router (assuming that the ISP you have assigns bandwidth to each IP address issued by the router--in which case the hub should be limited to one stream worth of bandwidth) and hook everything else but your hardware up to that, so all of the other devices have to share a single stream connection from the router--that should free up some bandwidth on the other streams (assuming you connect directly to the router). That's the best I could come up with. Not sure if it'll even work, but it's a simple thing to try. Other than that, I don't have any suggestions.

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First, I assume that you are the top dog for the network connection, otherwise any ideas may be moot.
Second, and this is more important. TRY DIPLOMACY. Talk to the offending persons, try to set some ground rules, agree on times to play and times to myspace. This is the BEST option I will give.

Have you considered changing one or two properties of the network cards? For example: you can set your network card to only work 1/2 duplex (one way at a time) and 10mpbs.
I understand that that is not of major help considering your bandwidth is less than 10mpbs. It is a diagnostic method I use at work to find which PC is messing w/ some switches. It WILL slow down their work, as the computer will be switching between upload and download. Granted it can do this many times per second and you may not notice the difference, but it will have an effect.

Other options would be to block those certain web pages while you are gaming, either through the router administration, if available, or via a HOSTS file you could place on the "offending PC's". I do this to prevent my younger brothers from surfing for pornography on my computer. The size of my HOSTS file slows down drastically my initial connection to various internet resources, so keep it small if you choose this path.

Doing the latter will completely block the access (if done properly), but requires copying a certain file to each PC before, gaming on the XBOX and removing it afterwards. This is not a kind thing to do, as outright denial is sure to ruin the bonds of friendship and companionship between all parties.

Try Diplomacy first, then if you must try one or two of the other options, do so at your own risk. We can provide help with the settings for the NIC, or HOSTS file.