how does bandwidth work?

Hi.

As some of you may remember, I got a VPS a few months ago. 
Recently I've been running a teamtalk server and icecast and other things and I realized that I don't really understand bandwidth.  I understand that it is the amount of data being uploaded/downloaded from the server, but that doesn't explain why it starts slowing down after too many things start happening.  My server hasn't done that, but I was wondering if there's a way to check how much the server can take. 

My host/controll panel says that I have 1000 gb of bandwidth, but that doesn't explain what exactly it'll start to slow down.  Does it have to do with the server's memory going up?

Anyway I hope this question made sense.
Thanks!

URL: http://forum.audiogames.net/viewtopic.php?pid=155131#p155131

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