Question about mod_bandwidth

BandWidthModule on
<Directory />
BandWidth all 65535
</Directory>

Will this effect ALL SIMULTANIOUS connections?
Will it effect ALL files on the system? (/ and down.../home /home/sites etc etc)

So if I get this right,
BandWidthModule on
<Directory />
BandWidth all 65535
</Directory>
will cap the speed of the ENTIER server at 512KBIT/sec (64kbyte/sec) for ALL connections to httpd?

Thanks

Yes it will cap your entire http connections to 64kbyte/sec.