If you delete the media update and download it again with a different Gamertag it will let you watch videos correctly while offline. It doesn't make much sense, but it gets the job done.

I have Cogeco's 10mbit service, and I don't have any problems with torrents, uploading may not be as fast as downloading, but if anything is left alone to seed, it will get the job done. The only thing I can think that would matter is that my client allows me to use a custom port. My thinking was always that to be as bad as everybody claims they are, Cogeco must be coming down heavy on bittorrent specific ports and leaving everything else alone.