A content distribution method and system for distributing content over a peer-to-peer network such that the full potential throughput of the network is achieved. The content distribution method divides the content to be distributed into many small blocks. Each of the content blocks then is assigned to a node, which can be a content-requesting node, a non-content-requesting node or a source node. Content is assigned based on a capacity of the node, where nodes having a larger capacity are assigned a greater number of content blocks and nodes having a smaller capacity are assigned a fewer content blocks. The capacity generally is defined as the upload bandwidth of the node. Redistribution queues are employed to control the throughput of the distribution. This bandwidth control strategy ensures that upload bandwidths of the peer and source nodes are fully utilized even with network anomalies such as packet losses and delivery jitters.