Well you picked the right software for your problem. Nobody beats Gargoyle when it comes to keeping harmony in the house of the online gamer.
Start with the default QoS setup and enable both upload and download QoS with the appropriate link speeds for your ISP and then enable the active congestion controller .
Next, make a new class for your Quake game on both upload and download QoS pages and then make a rule to direct the Quake traffic to those classes. Play your game when no one is home and insure that the traffic from the game is going to the correct class by watching the class load display while actually playing the game.
Finally, set the minimum bandwidth setting on these classes about 25% higher than what you observed that the game actually uses. You can typically leave the percent and max bandwidth on your new classes at the default.
The hardest part is the rule. The only effective way in my view is to use IP addresses or port numbers. I play XBOX so its easy for me to write the rules on the IP address of the console. Never played Quake so don't know much about it, you will have to do a little research.
Now I am not going to tell you that things will be perfect. You may notice a little variance in your ping times when the wife in grooving to youtube but you should see a dramatic improvement.
Let us know how it goes.
PS. You have this note at the end of your post
Additional info:
"Connection type - 2MB /day, 10MB/night.
What does this mean exactly? Is it upload or download speed that varies? The congestion controller has a 5 to 1 range and only works on the download side so keep that in mind.