Ubuntu 12.04

I'm a beginner at firewalling...I put a shorewall-ed pc i created between my DSL Modem and my personal network router. My torrent download speed dramatically decreased down to a crawl and also only one torrent will download at a time now dispite having several activated.

I wasn't sure how to set up my rules file for ktorrent so it currently looks like this (I have added the arrows with labels to show what each port is in ktorrent):

#Allow ktorrent
ACCEPT loc net tcp,udp 6881 <-------Network/Ports & Limits: Port
ACCEPT net loc tcp,udp 6881 <-------Network/Ports & Limits: Port

ACCEPT loc net udp 8881 <-------Network/Ports & Limits: UDP tracker port
ACCEPT net loc udp 8881 <-------Network/Ports & Limits: UDP tracker port

ACCEPT loc net udp 7881 <-------Bit Torrent/Features: UDP port for DHT communications
ACCEPT net loc udp 7881 <-------Bit Torrent/Features: UDP port for DHT communications

Any ideas on what I have done wrong???
Thanks for your suggestions!

Is the Shorewall system acting purely as a firewall, or is it running it's own NAT as well?

If it is running it's own NAT, then you currently have a "Double NAT" setup - which does not tend to work too well for peer to peer based communications. If you want to use your Shorewall system as your network firewall, then you need to place the Shorewall system into a DMZ - which can usually be done in your router configuration.