This isn't a problem on Intrepid for me. Tested with guest account for a
fresh config and there was enough space for at least 4 torrents.
Marking this bug as fixed since it was mentioned 1.06 in Hardy fixed the
issue, and there have been no reports to the contrary. Thanks for your
report.
** Changed in: transmission (Ubuntu)
Status: Incomplete => Fix Released
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Transmission window is too small
https://bugs.launchpad.net/bugs/199856
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