Yes, you can control how much bandwidth is allocated. Most routers (not all) have a service called QoS (Quality of service) which allows you to fix the bandwidth on a per-application-basis. Mind you, it is not a per-user-basis.
Yet, if you suspect that torrent downloads are really the source of your problem, you can easily limit the fraction of available bandwidth allotted to a variety of processes, so as to keep the use of common resources fairly distributed among all users. Also, keep in mind that downloading may very well take place at night, so that you even search for more sophisticated routers allowing a finer control of resource allocation.
As for seeing who is doing what on your LAN, the best known instruments is wireshark, which is based upon a cruder-looking program, tcpdump, which is basically only a debugging tool. With wireshark, sorting users, protocols, destination is considerably easier. You may want to look at that.