There's a piece of windows software called netlimiter that allows you to limit download and upload traffic through your computer. If you could set up an old computer with 2 LAN cards (one to your lan router and one to the internet) you could limit speed but not total traffic to your buddie's computers. Not saying it's an elegant or a great solution but maybe easier to set up than a linux router.
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I've had a perfectly wonderful evening. But this wasn't it.
Groucho Marx
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