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What is the rough estimate of internet speed needed to run the standard client? Does a faster Internet connection increase the client performance (by that I mean how fast it updates its blockchain, sends transactions, and how well can it function as a node in the network)?

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Could you clarify what you mean by "client performance"? –  D.H. Oct 27 '11 at 19:43
    
Added some explanation. I was generally inspired by updating my blockchain on a fast network (compared to my home) and the client not moving as fast as I hoped it would. –  ThePiachu Oct 27 '11 at 19:50
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Internet connection speed has to be fast enough to download new blocks as they get mined. With current transaction rate it requires 1-2 Kb/s. But faster connection would help to reduce chance of double spend attack if you run retail business and accept transactions with 0 confirmations.

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What do you mean by "Kb"? There is no such unit (capital K is not a valid SI prefix). If you capitalize the "K" wrong, who knows what do you mean by "b"? bits or bytes? –  miernik Nov 25 '11 at 17:08
    
Unfortunately, apart from SI prefix system there is also operation system conventions, terms used in in the context of telecommunication transmission speeds and JEDEC memory standards e.g. "JEDEC standards refer to memory capacity as a number followed by the units. (64Mb, 256MB, 1GB, or 4TB.)". So regardless of what convention I would have used for kilobyte, as 1024 bytes (byte is 8 bits), there still would be someone confused. –  Serith Nov 25 '11 at 19:44
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The speed at which you download a new copy of the blockchain is more dependent on the # of connections you have with the network. To increase the number of connections to the Bitcoin network and improve Block chain speed open/forward port 8333 to the computer which is running the client.

This will reduce the delay (latency) between the time new transaction/blocks occur and when you learn of them. Having more connections means on average you are closer to any event (the a node submitting a new transaction, or new block solution) and thus learn about it quicker.

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