KaZaa uses a central server (or better more than one) to distribute the necessary P2P data between uploader and downloader. And it tags a person a certain speed with which he can upload, or better a certain rank.
Most people on KaZaa have a rating of 0. This means that whenever there is more than person downloading a certain file from an uploader, the ones with rating 0 only get what remains of the bandwidth. The higher your rating, the more bandwidth is dedicated to you. Unless you are the only person downloading, you will never get anywhere near the uploaders bandwidth limit, though.
What you experience is related to another feature. The speed you experience is not refering to an actual download, it is "downloading" the file from your own comp. All internet connections share or can access a certain tempory download file. In KaZaa´s case, you can see the DAT files in the download folder.
When using the browser to download the same file as KaZaa is downloading (as long as they can both access the temp files on HD or in memory), the browser will not download the same file from the web again. It will just use the temporary copy instead. And that of course stops at the point KaZaa reached when downloading the file.

It´s the same you can experience when downloading pictures or smaller movies.
For example go to the CFC main page!
Then click on a screenshot and let the picture load. Then use right-click to save the pic. You will see that it saves immediatly, you probably won´t even see the download box.
Now go back to the main page and right-click on ANOTHER SOTD. Select "Save target as..." and save that, too.
Unless you are very fast you will get the download box and see it download within a few seconds.

In the first case, IE or whatever browser, saved the SOTD once you loaded the pic in Temp. Internet Files or another temp directory. When you save the pic, it will NOT download it from the web, instead it will copy it from the temp directory.
In the second case it will download it from the web as it has no copy of it in the temp directory. (so select a screenshot you have not looked at recently

)
That´s the same principle, the 500-1000kB/sec is not your actual download speed. In fact most web servers do not allow such a bandwidth for a single connection. It displays the speed it copies from the temp file instead.
So, to answer your question, to get a better download speed at KaZaa, first increase your ranking by letting people upload from your comp. And for downloading, order your search results by bandwidth and select the highest before clicking download.
