At the time of writing, the SkyDrive client application on Windows does not support bandwidth throttling on uploads, so if you start uploading a large number of files, it will try to use all the available bandwidth, and this behaviour has an impact on other applications accessing the Internet.
A quick fix to this behaviour is:
- install a network traffic manager app, such as SeriousBit NetBalancer (I will use NetBalancer in this example)
- start SkyDrive app
- start NetBalancer, and look for the SkyDrive process (SkyDrive.exe), right-click to open the menu, and choose Upload Priority | Limit...
- enter the max amount of upload bandwidth to be used by SkyDrive, and click ok
Now the upload speed of SkyDrive will be capped at the specified amount.
Please note that closing NetBalancer will remove any limit on SkyDrive upload speed.