Erm you are shaping lo so it will only shape packets leaving the lo interface, you 
probably want to try changing the 
dev to your internet device....

>Please correct me if I'm wrong with the following:
>I've create a qdisc and class with:
>tc qdisc add dev lo root handle 1: htb default 20
>tc class add dev lo parent 1: classid 1:1 htb rate 64kbit ceil 64kbit

>Now, if my actual uplink speed is larger (512 kbit/s), traffic should be
>shaped to the desired rate (64 kbit/s), right?
>But for me upload traffic is still at full speed of 512 kbit/s.
>How do I prevent this?
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