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Andreas Krey:
My main question: How do circuit creation requests on one's Tor relay cause load on one's network infrastructure? Is it DNS requests? Is it TCP connection state entries? It's not bandwidth, we observed that above, and my router can handle far faster pipes than the one it's on currently. The DNS failing is a sign that the router is under severe stress.
Possibly your uplink is full (supposing you're on some DSL), and is starting to build up ping time; then DNS requests to the outside can start to timeout.
Andreas
Unlikely - I do pseudo-QoS such that my uplink should never be full. It's possible, but I believe it's more likely that my router is thrashing for whatever reason and starts to be real slow at responding to DNS.