should there be high amounts of loopback traffic under ltsp?

[john]

HI all,

I notice that there is essentially 1 to 1 correspondence between the
number of bits that my thin clients are using while surfing the
internet and traffic on the loopback interface of
the LTSP server e.g. if my users have surfed 10 gig's of youtube
today, 10 gigs of traffic have passed through not only the interfaces
facing the clients but also the loopback interface on the server. Is
this the expected behaviour?

I am especially interested since the user experience seems to be very
slow these days once I exceed 25 clients on 4 cores/16 gig ram.

Thanks!

John