Packet loss and attachment problems

I am noticing that when I go near (not necessarily in) a sim where there are lots of avatars (like 40, which is alarmingly common of late) I start getting packetloss. However, if I keep in an area where there are not too many heavily populated sims, I don't get any packetloss. I also notice that if I am anywhere near one of the busy sims, I get the "please try again later" message. Turning down the bandwidth settings doesn't seem to help, and since it seems to be location dependent, I am assuming this has to do with the recent influx.

Oh yeah, I keep getting "teleport blocked" messages and I can't move to another sim. Right now the one I'm in is totally empty so I have no idea what the deal is.